Frace company quarries limestone, crushes it and sells it to be used in road building. The entity paid P20,000,000 for a certain quarry. The property can be sold for P6,000,000 after production ceases. Estimated tons of total reserves 20,000,000 Tons quarried through December 31, 2016 8,000,000 Tons quarried in 2017 3,000,000 An engineering study performed in 2017 indicated that on January 1, 2017, 15,000,000 tons of limestone were available. What amount of depletion should be recognized for 2017?
Frace company quarries limestone, crushes it and sells it to be used in road building. The entity paid P20,000,000 for a certain quarry. The property can be sold for P6,000,000 after production ceases. Estimated tons of total reserves 20,000,000 Tons quarried through December 31, 2016 8,000,000 Tons quarried in 2017 3,000,000 An engineering study performed in 2017 indicated that on January 1, 2017, 15,000,000 tons of limestone were available. What amount of depletion should be recognized for 2017?
Chapter1: Financial Statements And Business Decisions
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33. Frace company quarries limestone, crushes it and sells it to be used in road building. The entity paid P20,000,000 for a certain quarry. The property can be sold for P6,000,000 after production ceases.
Estimated tons of
Tons quarried through December 31, 2016 8,000,000
Tons quarried in 2017 3,000,000
An engineering study performed in 2017 indicated that on January 1, 2017, 15,000,000 tons of limestone were available. What amount of depletion should be recognized for 2017?
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