in 2020, ABC Company paid P4,000,000 to purchase land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is P800,000. Extraction activities began in 2021 and by the end of the year, 20,000 tons had been recovered and sold. In 2022, geological studies indicated that the total amount of mineral deposits had been underestimated by 60,000 tons. During 2022, 30,000 tons were extracted, and 28,000 tons were sold. What is the depletion rate per ton in 2022?
in 2020, ABC Company paid P4,000,000 to purchase land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is P800,000. Extraction activities began in 2021 and by the end of the year, 20,000 tons had been recovered and sold. In 2022, geological studies indicated that the total amount of mineral deposits had been underestimated by 60,000 tons. During 2022, 30,000 tons were extracted, and 28,000 tons were sold. What is the depletion rate per ton in 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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in 2020, ABC Company paid P4,000,000 to purchase land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is P800,000. Extraction activities began in 2021 and by the end of the year, 20,000 tons had been recovered and sold. In 2022, geological studies indicated that the total amount of mineral deposits had been underestimated by 60,000 tons. During 2022, 30,000 tons were extracted, and 28,000 tons were sold. What is the depletion rate per ton in 2022?
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