On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for an area of interest with removable ore estimated by geological surveys at 10,000,000 tons. Mina is required by the national government to restore the area of interest after the extraction of the estimated units of reserves, Mina Company estimates that it will take 10 years to fully extract the reserves and estimates its restoration cost to be P10,000,000. The relevant discount rate is 10% (use 3 decimal places to round off the present value factor). The Company also incurred P2,150.000 of development costs in preparing the property for the extraction of the ore. During 2020, 540.000 tons were mined. How much is the depletion/amortization expense for the year ended December 31, 2020? O 7.082.100 O6.966,000 O7.173.900 O 7.290,000

On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for an area of interest with removable ore estimated by geological surveys at 10,000,000 tons. Mina is required by the national government to restore the area of interest after the extraction of the estimated units of reserves, Mina Company estimates that it will take 10 years to fully extract the reserves and estimates its restoration cost to be P10,000,000. The relevant discount rate is 10% (use 3 decimal places to round off the present value factor). The Company also incurred P2,150.000 of development costs in preparing the property for the extraction of the ore. During 2020, 540.000 tons were mined. How much is the depletion/amortization expense for the year ended December 31, 2020? O 7.082.100 O6.966,000 O7.173.900 O 7.290,000

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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