Cost Adjustments to Assets Depreciating Under a Units of Production Method
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 3, you realize that you entered the wrong asset cost. You adjust the recoverable cost to $15,000.
Expensed
Amortized
See Also
Changing Financial and Depreciation Information
Amortized and Expensed Adjustments
Depreciation Rules (Books)
