Capacity Adjustments
Example: You purchase an oil well for $10,000. You expect to extract 10,000 barrels of oil from this well. Each quarter you extract 2,000 barrels of oil. In Year 1, Quarter 4 you discover that you entered the wrong capacity. You increase the production capacity to 50,000 barrels.
Expensed
Amortized
See Also
Assets Depreciating Under Units of Production
Amortized and Expensed Adjustments
Changing Financial and Depreciation Information
Entering Production Amounts