In 2020, Tableta Company paid P4,000,000to purchase a land containing a totalestimated 160,000 tons of extractablemineral deposits. The estimated value of theproperty after the mineral has been removedis P800,000. Extraction activities began in2021 and by the end of the year, 20,000tons had been recovered and sold. In 2022,geological studies indicated that the totalamount of mineral deposits had beenunderestimated by 60,000 tons. During 202,30,000 tons were extracted, and 28,000tons were sold.What is the depletion rate in 2022?12.7320.0014.0015.56

Depletion rate per Ton = ( Land value - Salvage value ) / Number of tons

In 2020, Tableta Company paid P4,000,000 to purchase a 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

In 2020, Tableta Company paid P4,000,000 to purchase a 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

In 2020, Tableta Company paid P4,000,000
to purchase a 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 202,
30,000 tons were extracted, and 28,000
tons were sold.
What is the depletion rate in 2022?
12.73
20.00
14.00
15.56

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