Cost depletion
Input(s)
\(A B\): Adjusted Basis for The Taxable Year (currency unit)
\(Q\): Number of Units Sold in That Year (number)
\(R_{r}\): Number of Remaining Reserves at the End of the Taxable Year (number)
Output(s)
CD: Cost Depletion (currency unit)
Formula(s)
\[
\mathrm{CD}=\mathrm{AB} *\left(\frac{\mathrm{Q}}{\mathrm{R}_{\mathrm{r}}+\mathrm{Q}}\right)
\]
Reference(s)
Mian, M. A. 2011. Project Economics and Decision Analysis Volume 1: Deterministic Models, Second Edition. Tulsa, Oklahoma: PennWell Corporation. Chapter 4, Page: 204.