In 20X1, ABC Co. paid P1M to purchase a land containing a total estimated 160,000 tons of extractable mineral ore. The estimated value of the property after the mineral has been removed is P200,000. Extracted operations began in late 20X1 with a total extracted ores of 20,000 tons were sold until the end of 20X2. In 20X3, geological studies indicated that the total amount of mineral deposits had been underestimated by 25,000 tons. During 20X3, 30,000 tons were extracted and 28,000 tons were sold. What is the depletion rate per ton at 20X3? (round answer to nearest centavo/ 2 decimal points)
In 20X1, ABC Co. paid P1M to purchase a land containing a total estimated 160,000 tons of extractable mineral ore. The estimated value of the property after the mineral has been removed is P200,000. Extracted operations began in late 20X1 with a total extracted ores of 20,000 tons were sold until the end of 20X2. In 20X3, geological studies indicated that the total amount of mineral deposits had been underestimated by 25,000 tons. During 20X3, 30,000 tons were extracted and 28,000 tons were sold. What is the depletion rate per ton at 20X3? (round answer to nearest centavo/ 2 decimal points)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 20X1, ABC Co. paid P1M to purchase a land containing a total estimated 160,000 tons of extractable mineral ore. The estimated value of the property after the mineral has been removed is P200,000. Extracted operations began in late 20X1 with a total extracted ores of 20,000 tons were sold until the end of 20X2. In 20X3, geological studies indicated that the total amount of mineral deposits had been underestimated by 25,000 tons. During 20X3, 30,000 tons were extracted and 28,000 tons were sold.
What is the depletion rate per ton at 20X3? (round answer to nearest centavo/ 2 decimal points)
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