Section 7
Depletion of Assets
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Boundless Accounting
Accounting
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3 concepts
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Depletion Base
The depletion base is the total cost of a natural resource and includes acquisition, exploration, development, and restoration costs.
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Resource Cost Write-Off
The term write-off describes removing an asset whose value is zero and is no longer in use from the balance sheet.
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Recoverable Reserves
Recoverable reserves are the amount of a natural resource present and their value is used to compute the resource's depletion expense.