houses and other fixed installations are constructed at a cost of P8,000,000 and such expenditures are charged to mine improvements. Operations began on January 1, 2022 and resources removed totaled 600,000 tons. During 2023, a discovery was made indicating that available resource after 2023 will totaled 1,875,000 tons. At the beginning of 2023, additional bunk houses were constructed in the amount of P770,000. In 2023, only 400,000 tons were mined because of a strike. 27) What amount should be recorded as depletion for 2023? A. 3,120,000 B. 2,850,000 C. 1,280,000 D.2,080,000 28) What amount should be recorded as depreciation for 2023? A. 1,120,000 B. 2,400,000 C. 1,600,000 D. 1,360,000
On January 1, 2022, Layag Company paid P11,000,000 for property containing natural resource of 2,000,000 tons of ore. The present value of the estimated cost of restoring the land after the resource is extracted is P900,000. The land will have a value of P1,500,000 after it is restored for suitable use.
Tunnel, bunk houses and other fixed installations are constructed at a cost of P8,000,000 and such expenditures are charged to mine improvements. Operations began on January 1, 2022 and resources removed totaled 600,000 tons. During 2023, a discovery was made indicating that available resource after 2023 will totaled 1,875,000 tons.
At the beginning of 2023, additional bunk houses were constructed in the amount of P770,000. In 2023, only 400,000 tons were mined because of a strike.
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27) What amount should be recorded as depletion for 2023?
A. 3,120,000 B. 2,850,000 C. 1,280,000 D.2,080,000
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28) What amount should be recorded as
depreciation for 2023?
A. 1,120,000 B. 2,400,000 C. 1,600,000 D. 1,360,000
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