PLEASE ANSWER ALL OF THIS QUESTION ASAP!!! Problem 30-14 (IAA)Siargao Company acquired a mineral right for P30,000,000 inJanuary 2022. The mine had a recoverable ore estimated at4,000,000 tons.After it has extracted all the ore, the entity is required by lawto restore the land to the original condition at a discountedamount of P2,000,000. The entity believed that the propertycan be sold afterwards for P5,000,000.Early in 2022, roads were constructed and other developmentcosts were incurred to aid in the extraction and transportationof the mined ore at a cost of P6,000,000. In 2022, 200,000 tons ofore were mined and sold.On December 31, 2023 a new survey made by a new miningengineer indicated that 5,000,000 tons of ore were available formining. In 2023, 225,000 tons of ore were extracted and sold.What depletion expense should be recognized for 2023?a. 1,650,000b. 1,350,000c. 1,856,250d. 1,410,000787

Depletion expense is an expense that represents the allocation of the total cost of natural…

Answered: mining. In 2023, 225,000 What depletion…

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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 75BPSB

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16.Entity D acquired a property in 2021 which contains mineral deposit. The acquisition cost of the property was P20,000,000. After acquisition, the following costs were incurred: Exploration cost P13,000,000; Development cost related to drilling wells P10,000,000; Development cost related to production equipment P15,000,000. For P2,000,000, the entity is legally required to restore the land to a condition appropriate for resale. It is estimated that the property can be sold for P5,000,000 following mineral extraction. Geological estimates indicate that 5,000,000 tons of mineral may be extracted. The entity extracted 600,000 tons of the mineral in 2021 and sold 450,000 tons. How much is the depletion included in the entity's inventory at Dec 31, 2021?
Problem 28-9 (AICPA Adapted) purchased a mineral mine for P36,000,000 with removable At the beginning of current year, Handsome Company ore estimated by geological survey at 2,160,000 tons. The property has an estimated value of P3,600,000 after the ore has been extracted. The entity incurred P10,800,000- of development costs preparing the property for the extraction of ore. During the current year, 270,000 tons were removed and 240,000 tons were sold. What amount of depletion should be included in cost of goods sold for the current year? a. 3,600,000 b. 4,050,000 c. 4,800,000 d. 5,400,000
11:39 Module1_PPE and .. Problem 28-13 (AICPA Adapted) In 2019, Lepanto Mining Company purchased property with natural resources for P28,000,000. The property had a residual value of P5,000,000. However, the entity is required to restore the property to the original condition at a discounted amount of P2,000,000. In 2019, the entity spent P1,000,000 in development cost . and constructed a building on the property costing P3,000,000. The entity does not anticipate that the building will have utility after the natural resources are removed. In 2020, an amount of P1,000,000 was spent for additional development on the mine. The tonnage mined and estimated remaining tons are: Tons extracted Tons remaining 2019 2020 3,000,000 3,500,000 10,000,000 7,000,000 2,500,000 2021 1. What amount should be recognized as depletion for 2020? a. 6,900,000 b. 9,600,000 c. 8,100,000 d. 8,400,000 2. What amount should be recognized as depletion for 2021? a. 10,150,000 b. 11,025,000 c. 15,750,000 d. 9,450,000
At the beginning of the current year, JKL Company purchased a mineral mine for P26,400,000 with removable ore estimated at 1,200,000 tons. After it has extracted all the ore, the entity will be required by law to restore the land to its original condition at an estimated cost of P2,100,000. The present value of the estimated restoration cost is P1,800,000. The entity believed that it will be able to sell the property afterwards for P3,000,000. During the current year, the entity incurred P3,600,000 of development cost preparing the mine for production, removed 80,000 tons of ore and sold 60,000 tons. Determine the total amount of depletion should be recorded for the current year. 1,920,000 b. 1,440,000 c. 1,940,000 d. 1,455,000
On Jan 1, 20X1 ABC Mining Co. purchased a mine for P2,640,000 with removable ore estimated at 1,200,000 tons. ABC is required by law to restore the land to its original state at an estimated cost of P220,000. Present value of the restoration cost is P180,000. ABC believes that they can sell the land after extracting all the ore at P300,000. Development cost in preparing the mine for production is P360,000. On Dec 31, 20X1, ABC removed and sold 60,000 tons of ore. In its 20X1 profit/loss statement, what amount should ABC report as depletion?
PLEASE PROVIDE THE SSOLUTIONS FOR THE CORRECT ANSWERS In 20x1, OBSTREPEROUS NOISY Mining Corp. acquired the right to use 1,000 acres of land to minefor gold. The lease cost is ₱200,000,000, and the related exploration costs on the property amountedto ₱40,000,000. It is the policy of OBSTREPEROUS Mining Corp. to capitalize all costs of explorationand evaluation of mineral resources. Intangible development costs of drilling, tunnels, shafts, andwells incurred before opening the mine amounted to ₱340,00,000. At the end of the mine’s economicuseful life, OBSTREPEROUS Mining Corp. is required by legislation to restore the site. Estimatedrestoration costs have a fair value of ₱20,000,000. OBSTREPEROUS Mining Corp. estimates that themine will provide approximately 100,000,000 ounces of gold. Actual ounce of gold mined in 20x2totaled 300,000 ounces. 3. How much is the depletion charge in 20x2?a. 1,740,000 b. 1,800,000 c. 165,000 d. 150,000 4. Assuming that of the 300,000 ounces of gold…
Use the following information for the next two questions: In 20x1, OBSTŘEPEROUS NOISY Mining Corp. acquired the right to use 1,000 acres of land to mine for gold. The lease cost is P200,000,000, and the related exploration costs on the property amounted to P40,000,000. It is the policy of OBSTREPEROUS Mining Corp. to capitalize all costs of exploration and evaluation of mineral resources. Intangible development costs of drilling, tunnels, shafts, and wells incurred before opening the mine amounted to P340,00,000. At the end of the mine's economic useful life, OBSTREPEROUS Mining Corp. is required by legislation to restore the site. Estimated restoration costs have a fair value of P20,000,000. OBSTŘEPEROUS Mining Corp. estimates that the mine will provide approximately 100,000,000 ounces of gold. Actual ounce of gold mined in 20x2 totaled 300,000 ounces. 3. How much is the depletion charge in 20x2? 4. Assuming that of the 300,000 ounces of gold extracted in 20x2, 280,000 ounces were…
Identify intangible assets in the given problem
On July 1, 2022, Trisha Company purchased the rights to a mine for P13,200,000, of which P1,200,000 was allocable to the land. Estimated reserves were 1,500,000 tons. The entity expects to extract and sell 25,000 tons per month. The entity purchased mining equipment on July 1, 2022 for P9,500,000. The mining equipment had a useful life of 8 years. However, after all the resource is removed, the equipment will be of no use and will be sold for P500,000. 1. What is the depletion for 2022? A. 2,400,000 B. 1,200,000 C. 2,640,000 D. 1,320,000 2. What is the depreciation for 2022? A. 1,800,000 B. 1,125,000 C. 900,000 D. 562,500
Exercise 11-19 (Algo) Amortization [LO11-4, 11-5] Janes Company provided the following information on intangible assets: a. A patent was purchased from the Lou Company for $1,350,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $480,000 when Lou sold it to Janes. b. During 2021, a franchise was purchased from the Rink Company for $630,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase. c. Janes incurred research and development costs in 2021 as follows: Materials and supplies. Personnel Indirect costs Total d. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years. $153,000 193,000 73,000 $419,000 Required: 1. Prepare the entries necessary for years 2019 through 2021 to reflect the above…
15 Clegane Company had the following acquisitions of intangible assets in 2022: Franchise On January 31, 2022, Clegane signed an agreement to operate as franchisee of Clear Copy Service, Inc. for an initial franchise of P780,000. Of this amount, P300,000 was paid when the agreement was signed and the balance was payable in four annual payments of P120,000 each, beginning January 31, 2023. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The implicit rate for loan of this type is 12%. The agreement also provides the 1.5% of the revenue from the franchise must be paid to the franchisor annually. Clegane’s revenue from the franchise in 2022 was P9,500,000. Clegane estimates the useful life of the franchise to be ten years. At the end of 2022, the franchise recoverable amount was P610,000. Trademark On March 1, 2022 Clegane purchased for P400,000 a trademark for a very successful soft drink it markets under the name…
Exercise 11-19 (Algo) Amortization [LO11-4, 11-5] Janes Company provided the following information on intangible assets: a. A patent was purchased from the Lou Company for $1,400,000 on January 1, 2019. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $490,000 when Lou sold it to Janes. b. During 2021, a franchise was purchased from the Rink Company for $640,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase. C. Janes incurred research and development costs in 2021 as follows: Materials and supplies $154,000 194,000 74,000 Personne1 Indirect costs Total $422,000 d. Effective January 1, 2021, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years. Required: 1. Prepare the entries necessary for years 2019 through 2021 to reflect the above…