Transcribed Image Text. Four years ago, an ore-crushing unit was installed at a mine which cost P81,000. Annual operating costs for this unit are P3,540. This unit was estimated to have a life of 10 years. The quantity of ore to be handled is to be doubled and is expected to continue at this higher rate for at least 10 years.
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WhatsAppGet PriceGet A Quote32.X.Ltd leased on june 30 1990 an iron ore mine for a sum of Rs.1,00,000.It is estimated that the total quantity of ore in the mine is 20,000 tonnes.The annual output ia as follows: YEAR TONNES 1990 1000 1991 4000 1992 3200 1993 4200 Using the depletion method of depreciation show the mine A/c for the four’
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WhatsAppGet PriceGet A QuoteFor equipment that works very few hours per day, the derived equipment lives may be very long and local conditions should be checked for the reasonableness of the estimate. 3.3.3 Salvage Value (S) This is defined as the price that equipment can be sold for at the time of its disposal. Used equipment rates vary widely throughout the world.
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WhatsAppGet PriceGet A QuoteDepreciation refers to the natural wear and tear that occurs to a building and its assets over time. The Australian Taxation Office (ATO) allows this wear and tear to be claimed as a deduction. Mining companies can use either the prime cost or diminishing value method to work out the decline in value for all equipment and structures.
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