A firm revealed a large gold mine expected to produce 100 tons of gold .the farm invests 120,000 OMR for mining the gold. They are effective in extracting 30 tons of gold in the first year.Find the depletion expense 25212 OMR 36000 OMR 25113 OMR 30250 OMR
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
A firm revealed a large gold mine expected to produce 100 tons of gold .the farm invests 120,000 OMR for mining the gold. They are effective in extracting 30 tons of gold in the first year.Find the depletion expense
25212 OMR
36000 OMR
25113 OMR
30250 OMR
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