On January 1, 2022 Yuji Co. acquired a land containing ore for a total cost of P40,000,000. Other capitalizable cost incurred for the wasting assets amounted to P20,000,000 including a P5,000,000 Future value cost of Rehabilitating the area after the use of the property , applicable present value is as follows, using a Discount Rate of 10% PV of 1 after 10 Years =0.39 PV of Ordinary Annuity for 10 Yrs =6.14 Estimated Tons to be extracted are as follows: Year 1 = 5,000,000 to Date Year 2 = 4,000,000 Left Year 3 = 4,500,000 to Date Year 4= 6,000,000 to Date Year 5= 3,000,000 Left Year 6= No Change Year 7= Shut Down Year 8= Shut Down Year 9 = No Change Year 10 =5,500,000 to Date You Audit Findings has revealed that the company regularly quotas a 500,000 Tons per annum and has shown no indication of changing throughout the year Apply 2022 Applicable framework for PPE The Inspection of the mining machinery revealed the following information: Mining Machinery List Price 4,000,000 Mining Machinery Cash Price 3,000,000 Mining Machinery Discounted Cash flow Price 3,500,000 Testing Cost 500,000 Proceeds from Test 350,000 Included in the Mining Machinery price Freight Cost 300,000 Note: The Shipping document revealed that this is a freight prepaid Payment of Training Employees for the use of the mining equipment 200,000 SSS Phil Health and Pag ibig Fund of the Mining Employee 150,000 Future Dismantling Cost of Equipment 1,000,000 Vat Paid for the Acquisition of the Machinery 120,000 Customs duties paid for the Acquisition of the Machinery 250,000 How much is the Cost of the Wasting Asset
On January 1, 2022 Yuji Co. acquired a land containing ore for a total cost of P40,000,000. Other capitalizable cost incurred for the wasting assets amounted to P20,000,000 including a P5,000,000 Future value cost of Rehabilitating the area after the use of the property , applicable present value is as follows, using a Discount Rate of 10%
PV of 1 after 10 Years =0.39
PV of Ordinary Annuity for 10 Yrs =6.14
Estimated Tons to be extracted are as follows:
Year 1 = 5,000,000 to Date
Year 2 = 4,000,000 Left
Year 3 = 4,500,000 to Date
Year 4= 6,000,000 to Date
Year 5= 3,000,000 Left
Year 6= No Change
Year 7= Shut Down
Year 8= Shut Down
Year 9 = No Change
Year 10 =5,500,000 to Date
You Audit Findings has revealed that the company regularly quotas a 500,000 Tons per annum and has shown no indication of changing throughout the year Apply 2022 Applicable framework for PPE
The Inspection of the mining machinery revealed the following information:
Mining Machinery List Price 4,000,000
Mining Machinery Cash Price 3,000,000
Mining Machinery Discounted
Testing Cost 500,000
Proceeds from Test 350,000
Included in the Mining Machinery price Freight Cost 300,000
Note: The Shipping document revealed that this is a freight prepaid
Payment of Training Employees for the use of the mining equipment 200,000
SSS Phil Health and Pag ibig Fund of the Mining Employee 150,000
Future Dismantling Cost of Equipment 1,000,000
Vat Paid for the Acquisition of the Machinery 120,000
Customs duties paid for the Acquisition of the Machinery 250,000
How much is the Cost of the Wasting Asset
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