During the current year, Puppy Company incurred P4,000,000 in exploration cost for each 15 oil sells drilled in the current year. Of the 15 wells drilled, 10 were dry holes. Th entity used the successful effort method of accounting. The entity deleted 30% of the oil discovered in the current year. What amount of exploration cost would be reported in the year- end statement of financial position? a. 42,000,000 b. 14,000,000 c. 20,000,000 d. 6,000,000
During the current year, Puppy Company incurred P4,000,000 in exploration cost for each 15 oil sells drilled in the current year. Of the 15 wells drilled, 10 were dry holes. Th entity used the successful effort method of accounting. The entity deleted 30% of the oil discovered in the current year. What amount of exploration cost would be reported in the year- end statement of financial position? a. 42,000,000 b. 14,000,000 c. 20,000,000 d. 6,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During the current year, Puppy Company incurred P4,000,000 in exploration cost for each 15 oil sells drilled in the current year. Of the 15 wells drilled, 10 were dry holes. Th entity used the successful effort method of accounting. The entity deleted 30% of the oil discovered in the current year.
What amount of exploration cost would be reported in the year- end
a. 42,000,000
b. 14,000,000
c. 20,000,000
d. 6,000,000
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