In January 2022, Rover Mining Corporation purchased a mineral mine for P4,200,000 with removable ore estimated by geological surveys at 2,500,000 tons. The property has an estimated value of P400,000 after the ore has been extracted. Rover incurred P1,150,000 of development costs preparing the property for the extraction of ore. During 2022, 340,000 tons were removed and 300,000 tons were sold. For the year ended December 31, 2022, Rover should record what amount of depletion for the current year? P516,800 P594,000 P456,000 P673,200

In January 2022, Rover Mining Corporation purchased a mineral mine for P4,200,000 with removable ore estimated by geological surveys at 2,500,000 tons. The property has an estimated value of P400,000 after the ore has been extracted. Rover incurred P1,150,000 of development costs preparing the property for the extraction of ore. During 2022, 340,000 tons were removed and 300,000 tons were sold. For the year ended December 31, 2022, Rover should record what amount of depletion for the current year? P516,800 P594,000 P456,000 P673,200

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 January 2022, Rover Mining Corporation purchased a mineral mine for P4,200,000 with removable ore estimated by
geological surveys at 2,500,000 tons. The property has an estimated value of P400,000 after the ore has been
extracted. Rover incurred P1,150,000 of development costs preparing the property for the extraction of ore. During
2022, 340,000 tons were removed and 300,000 tons were sold. For the year ended December 31, 2022, Rover should
record what amount of depletion for the current year?
P516,800
P594,000
P456,000
O P673,200

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