17. The entity incurred the following in exploring a natural resources on January 1,2021 Acquisition cost of the land P10,000,000 Development cost 5,000,000 Exploration cost 6,000,000 Purchase of equipment 3,000,000 The entity expects to mine a total of 5,000,000 tons of natural gas, it is also estimated that 1,000,000 of natural gas will be extracted every year. The useful life of the equipment is 6 years, the equipment is used over a several project not just in that specific natural resources.
17. The entity incurred the following in exploring a natural resources on January 1,2021 Acquisition cost of the land P10,000,000 Development cost 5,000,000 Exploration cost 6,000,000 Purchase of equipment 3,000,000 The entity expects to mine a total of 5,000,000 tons of natural gas, it is also estimated that 1,000,000 of natural gas will be extracted every year. The useful life of the equipment is 6 years, the equipment is used over a several project not just in that specific natural resources.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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17. The entity incurred the following in exploring a natural resources on January 1,2021
Acquisition cost of the land P10,000,000
Development cost 5,000,000
Exploration cost 6,000,000
Purchase of equipment 3,000,000
The entity expects to mine a total of 5,000,000 tons of natural gas, it is also estimated that 1,000,000 of natural gas will be extracted every year. The useful life of the equipment is 6 years, the equipment is used over a several project not just in that specific natural resources.
On 2021 the entity extracted 1,500,000 tons of natural gas.
How much is the depletion for the year 2021?
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