Mark Company quarries limestone, crushes it and sells it to be used in road building. Mark paid P10,000,000 for a certain quarry. The property can be sold for P3,000,000 after production ceases. Estimated total reserves 10,000,000 Tons quarried through December 31, 2020 Tons quarried in 2021 4,000,000 1,500,000 An engineering study performed in 2021 indicated that on January 1, 2021, 7,500,000 tons of limestone were available. What is the depletion for 2021?

Mark Company quarries limestone, crushes it and sells it to be used in road building. Mark paid P10,000,000 for a certain quarry. The property can be sold for P3,000,000 after production ceases. Estimated total reserves 10,000,000 Tons quarried through December 31, 2020 Tons quarried in 2021 4,000,000 1,500,000 An engineering study performed in 2021 indicated that on January 1, 2021, 7,500,000 tons of limestone were available. What is the depletion for 2021?

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

Mark Company quarries limestone, crushes it and sells it to be used in road building. Mark paid
P10,000,000 for a certain quarry. The property can be sold for P3,000,000 after production ceases.
Estimated total reserves
10,000,000
Tons quarried through December 31, 2020
Tons quarried in 2021
4,000,000
1,500,000
An engineering study performed in 2021 indicated that on January 1, 2021, 7,500,000 tons of limestone
were available. What is the depletion for 2021?

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