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Minero, Inc. embarked a new venture in Salaginto Corporation in 2022. It expects to gleam 2,000,000 ounces of a precious ore from its holdings there, over several years. Relevant data follow: Cost of the mineral rights, P 500,000 Exploration cost, 2022 (1/3 successful), P 1,500,000 Extraction cost, 2022, P 2,000,000 Ore extracted, 2022 (500,000 oz.) Ore sold, 2022 (300,000 oz.)  What is depletion for 2022, using the successful efforts method of accounting for exploration costs?  A. 350,000 B. 250,000 C.150,000 D. 300,000

Minero, Inc. embarked a new venture in Salaginto Corporation in 2022. It expects to gleam 2,000,000 ounces of a precious ore from its holdings there, over several years. Relevant data follow: Cost of the mineral rights, P 500,000 Exploration cost, 2022 (1/3 successful), P 1,500,000 Extraction cost, 2022, P 2,000,000 Ore extracted, 2022 (500,000 oz.) Ore sold, 2022 (300,000 oz.)  What is depletion for 2022, using the successful efforts method of accounting for exploration costs?  A. 350,000 B. 250,000 C.150,000 D. 300,000

FINANCIAL ACCOUNTING
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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Minero, Inc. embarked a new venture in Salaginto Corporation in 2022. It expects to gleam 2,000,000 ounces of a precious ore from its holdings there, over several years. Relevant data follow:

Cost of the mineral rights, P 500,000

Exploration cost, 2022 (1/3 successful), P 1,500,000

Extraction cost, 2022, P 2,000,000

Ore extracted, 2022 (500,000 oz.)

Ore sold, 2022 (300,000 oz.) 

What is depletion for 2022, using the successful efforts method of accounting for exploration costs? 

A. 350,000

B. 250,000

C.150,000

D. 300,000

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