.Entity D acquired a property in 2021 which contains mineral deposit. The acquisition cost of the property was P20,000,000. After acquisition, the following costs were incurred: Exploration cost P13,000,000; Development cost related to drilling wells P10,000,000; Development cost related to production equipment P15,000,000. For P2,000,000, the entity is legally required to restore the land to a condition appropriate for resale. It is estimated that the property can be sold for P5,000,000 following mineral extraction. Geological estimates indicate that 5,000,000 tons of mineral may be extracted. The entity extracted 600,000 tons of the mineral in 2021 and sold 450,000 tons. How much is the depletion included in the entity's inventory at Dec 31, 2021?
16.Entity D acquired a property in 2021 which contains mineral deposit. The acquisition cost of the property was P20,000,000. After acquisition, the following costs were incurred: Exploration cost P13,000,000; Development cost related to drilling wells P10,000,000; Development cost related to production equipment P15,000,000. For P2,000,000, the entity is legally required to restore the land to a condition appropriate for resale. It is estimated that the property can be sold for P5,000,000 following mineral extraction. Geological estimates indicate that 5,000,000 tons of mineral may be extracted. The entity extracted 600,000 tons of the mineral in 2021 and sold 450,000 tons. How much is the depletion included in the entity's inventory at Dec 31, 2021?
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