On January 1, 2020, Nishinoya Company purchased a mineral mine for P26,400,000 with removable ore estimated at 1,200,000 tons. During 2020, the entity incurred P2,000.000 exploration cost and P1600,000 development cost related to drilling of wells. The entity removed 80,000 tons of ore and sold 60.000 tons of ore in 2020. What is the depletion rate per unit? O P23.33 O P22.00 O P25.00 O P23.67

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2020, Nishinoya Company purchased a mineral mine for P26,400,000 with removable
ore estimated at 1,200,000 tons. During 2020, the entity incurred P2,000.000 exploration cost and
P1.600,000 development cost related to drilling of wells. The entity removed 80,000 tons of ore and
sold 60.000 tons of ore in 2020.
What is the depletion rate per unit?
O P23.33
O P2.00
O P25.00
O P23.67
Transcribed Image Text:On January 1, 2020, Nishinoya Company purchased a mineral mine for P26,400,000 with removable ore estimated at 1,200,000 tons. During 2020, the entity incurred P2,000.000 exploration cost and P1.600,000 development cost related to drilling of wells. The entity removed 80,000 tons of ore and sold 60.000 tons of ore in 2020. What is the depletion rate per unit? O P23.33 O P2.00 O P25.00 O P23.67
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