2. Mark Company Mark Company quarries limestone, crushes it and sells it to be used in road building. Mark paidP10,000,000 for a certain quarry. The property can be sold for P3,000,000 after production ceases.Estimated total reserves10,000,000Tons quarried through December 31, 2020Tons quarried in 20214,000,0001,500,000An engineering study performed in 2021 indicated that on January 1, 2021, 7,500,000 tons of limestonewere available. What is the depletion for 2021?

Depletion refers to the reducing in the value of natural resources of the earth from extraction of…

Answered: An engineering study performed in 2021…

An engineering study performed in 2021 indicated that on January 1, 2021, 7,500,000 tons of limestone were available. What is the depletion for 2021?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 29CE

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

2. Mark Company

Mark Company quarries limestone, crushes it and sells it to be used in road building. Mark paid
P10,000,000 for a certain quarry. The property can be sold for P3,000,000 after production ceases.
Estimated total reserves
10,000,000
Tons quarried through December 31, 2020
Tons quarried in 2021
4,000,000
1,500,000
An engineering study performed in 2021 indicated that on January 1, 2021, 7,500,000 tons of limestone
were available. What is the depletion for 2021?

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