When the usefulness of plant assets used to extract natural resources is directly related to the depletion of a natural resource,their costs are depreciated using the units-of-production method of depreciation.

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The units-of-production method of depreciation is used when the usefulness of a plant asset is directly related to the amount of output it produces, which is applicable in the case of plant assets used to extract natural resources. As the natural resource is depleted over time, the asset becomes less useful and its value depreciates accordingly.

When the Usefulness of Plant Assets Used to Extract Natural