3. How much is the depletion charge in 20x2? 4. Assuming that of the 300,000 ounces of gold extracted in 20x2, 280,000 ounces were sold and 20,000 ounces remain in inventory. How much depletion is recognized in the 20x2 (a) statement of financial position and (b) statement of profit or loss and other comprehensive income, respectively? Statement of financial position Statement of profit or loss
Use the following information for the next two questions:
In 20x1, OBSTREPEROUS NOISY Mining Corp. acquired the right to use 1,000 acres of land to mine for gold. The lease cost is P200,000,000, and the related exploration costs on the property amounted to P40,000,000. It is the policy of OBSTREPEROUS Mining Corp. to capitalize all costs of exploration and evaluation of mineral resources. Intangible development costs of drilling, tunnels, shafts, and wells incurred before opening the mine amounted to P340,00,000. At the end of the mine's economic useful life, OBSTREPEROUS Mining Corp. is required by legislation to restore the site. Estimated restoration costs have a fair value of P20,000,000. OBSTREPEROUS Mining Corp. estimates that the mine will provide approximately 100,000,000 ounces of gold. Actual ounce of gold mined in 20x2 totaled 300,000 ounces.
3. How much is the depletion charge in 20x2?
4. Assuming that of the 300,000 ounces of gold extracted in 20x2, 280,000 ounces were sold and 20,000 ounces remain in inventory. How much depletion is recognized in the 20x2 (a)
Statement of financial position Statement of profit or loss
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