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Depletion Charge per Unit Solution

STEP 0: Pre-Calculation Summary
Formula Used
depletion_charge_per_unit = (Original Cost-Residual Value)/Total Number of Units Depletion
DC/Unit = (OC-RV)/n
This formula uses 3 Variables
Variables Used
Original Cost- Original cost is the total cost associated with the purchase of an asset.
Residual Value- Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value.
Total Number of Units Depletion- Total Number of Units Depletion is the total number of units available for depletion.
STEP 1: Convert Input(s) to Base Unit
Original Cost: 45000 --> No Conversion Required
Residual Value: 10 --> No Conversion Required
Total Number of Units Depletion: 12 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
DC/Unit = (OC-RV)/n --> (45000-10)/12
Evaluating ... ...
DC/Unit = 3749.16666666667
STEP 3: Convert Result to Output's Unit
3749.16666666667 --> No Conversion Required
FINAL ANSWER
3749.16666666667 <-- Depletion Charge per Unit
(Calculation completed in 00.016 seconds)

1 Other formulas that you can solve using the same Inputs

Percentage Rate of Annual Depreciation
percentage_rate_of_annual_depreciation = 1-(Scrap value/Original Cost) Go

Depletion Charge per Unit Formula

depletion_charge_per_unit = (Original Cost-Residual Value)/Total Number of Units Depletion
DC/Unit = (OC-RV)/n

How to Calculate Depletion Charge per Unit?

Depletion Charge per Unit calculator uses depletion_charge_per_unit = (Original Cost-Residual Value)/Total Number of Units Depletion to calculate the Depletion Charge per Unit, The depletion charge per unit is calculated by taking the total cost less salvage value and dividing it by the total number of estimated units. Depletion Charge per Unit and is denoted by DC/Unit symbol.

How to calculate Depletion Charge per Unit using this online calculator? To use this online calculator for Depletion Charge per Unit, enter Original Cost (OC), Residual Value (RV) and Total Number of Units Depletion (n) and hit the calculate button. Here is how the Depletion Charge per Unit calculation can be explained with given input values -> 3749.167 = (45000-10)/12.

FAQ

What is Depletion Charge per Unit?
The depletion charge per unit is calculated by taking the total cost less salvage value and dividing it by the total number of estimated units and is represented as DC/Unit = (OC-RV)/n or depletion_charge_per_unit = (Original Cost-Residual Value)/Total Number of Units Depletion. Original cost is the total cost associated with the purchase of an asset, Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value and Total Number of Units Depletion is the total number of units available for depletion.
How to calculate Depletion Charge per Unit?
The depletion charge per unit is calculated by taking the total cost less salvage value and dividing it by the total number of estimated units is calculated using depletion_charge_per_unit = (Original Cost-Residual Value)/Total Number of Units Depletion. To calculate Depletion Charge per Unit, you need Original Cost (OC), Residual Value (RV) and Total Number of Units Depletion (n). With our tool, you need to enter the respective value for Original Cost, Residual Value and Total Number of Units Depletion and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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