Mr. Park owns a mining property in Prosperidad. He allowed a mining company to operate under a condition that he will be paid 10% royalty on the gold production. The mining company produced P8M worth of gold during the year. How much net royalties will be paid to Mr. Park? a.P800,000 b.P640,000 c.P160,000 d.P720,000

Mr. Park owns a mining property in Prosperidad. He allowed a mining company to operate under a condition that he will be paid 10% royalty on the gold production. The mining company produced P8M worth of gold during the year. How much net royalties will be paid to Mr. Park? a.P800,000 b.P640,000 c.P160,000 d.P720,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A taxpayer engaged in manufacturing operations bought a machine with a salvage value of Php 50,000 and estimated useful life of 5 years for Php 650,000. What is the carrying value of the machine after 2 years of operation under the sum-of-the-Year-Digit Method? * hp P290,000 Php 240,000 Php 190,000 Php 250,000
In 20x1, ABC Mining Corp. acquired the right to use 1,000 acres of land to mine for gold. Thelease cost is ₱50,000,000, and the related exploration costs on the property amounted to₱10,000,000. It is the policy of ABC Mining Corp. to capitalize all costs of exploration andevaluation of mineral resources. Intangible development costs for drilling, tunnels, shafts, andwells incurred before opening the mine amounted to ₱85,000,000. At the end of the mine’seconomic useful life, ABC Mining Corp. is required by legislation to restore the site. Estimatedrestoration costs have a fair value of ₱5,000,000. ABC Mining Corp. estimates that the mine willprovide approximately 100,000,000 ounces of gold. ABC extracted 300,000 ounces of gold in20x2. How much is the depletion charge in 20x2? a. 450,000 b. 480,000 c. 360,000 d. 460,000
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Sah
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