In January, 2004, Nixon Corporation purchased a mineral mine for P6,800,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of P400,000 after the ore has been extracted. The company incurred P2,000,000 of development costs preparing the mine for production. During 2004, 500,000 tons were removed and 400,000 tons were sold. What is the amount of depletion that Nixon should expense for 2004? P1,600,000 OP1,280,000 P1,680,000 P2,240,000

In January, 2004, Nixon Corporation purchased a mineral mine for P6,800,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of P400,000 after the ore has been extracted. The company incurred P2,000,000 of development costs preparing the mine for production. During 2004, 500,000 tons were removed and 400,000 tons were sold. What is the amount of depletion that Nixon should expense for 2004? P1,600,000 OP1,280,000 P1,680,000 P2,240,000

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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