9. 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 depreciation expense for the year? Group of answer choices 500,000 1,500,000 600,000 900,000
9. 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 depreciation expense for the year? Group of answer choices 500,000 1,500,000 600,000 900,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9. 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
Group of answer choices
500,000
1,500,000
600,000
900,000
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