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mining. In 2023, 225,000 What depletion expense should be recognized for 2023? a. 1,650,000 b. 1,350,000 c. 1,856,250 d. 1,410,000 797

mining. In 2023, 225,000 What depletion expense should be recognized for 2023? a. 1,650,000 b. 1,350,000 c. 1,856,250 d. 1,410,000 797

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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Problem 30-14 (IAA) Siargao Company acquired a mineral right for P30,000,000 in January 2022. The mine had a recoverable ore estimated at 4,000,000 tons. After it has extracted all the ore, the entity is required by law to restore the land to the original condition at a discounted amount of P2,000,000. The entity believed that the property can be sold afterwards for P5,000,000. Early in 2022, roads were constructed and other development costs were incurred to aid in the extraction and transportation of the mined ore at a cost of P6,000,000. In 2022, 200,000 tons of ore were mined and sold. On December 31, 2023 a new survey made by a new mining engineer indicated that 5,000,000 tons of ore were available for mining. In 2023, 225,000 tons of ore were extracted and sold. What depletion expense should be recognized for 2023? a. 1,650,000 b. 1,350,000 c. 1,856,250 d. 1,410,000 787
Transcribed Image Text:Problem 30-14 (IAA) Siargao Company acquired a mineral right for P30,000,000 in January 2022. The mine had a recoverable ore estimated at 4,000,000 tons. After it has extracted all the ore, the entity is required by law to restore the land to the original condition at a discounted amount of P2,000,000. The entity believed that the property can be sold afterwards for P5,000,000. Early in 2022, roads were constructed and other development costs were incurred to aid in the extraction and transportation of the mined ore at a cost of P6,000,000. In 2022, 200,000 tons of ore were mined and sold. On December 31, 2023 a new survey made by a new mining engineer indicated that 5,000,000 tons of ore were available for mining. In 2023, 225,000 tons of ore were extracted and sold. What depletion expense should be recognized for 2023? a. 1,650,000 b. 1,350,000 c. 1,856,250 d. 1,410,000 787
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