II Jánuary 2019, Straw Corporation purchased a mineral mine for P9,800,000 with removable ore estimated by geological surveys at 3,280,000 tons. The property has an estimated value of P840,000 after the ore has been extracted. The company incurred P880,000 of development costs in preparing the property for the extraction of ore. During 2019, 340,000 tons were removed and 280,000 tons were sold. For the year ended December 31, 2019, how much should the corporation include as depletion expense in its cost of goods sold? *

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is