On July 1, 2022, ABC Company, (using a calendar year), purchased the rights to a mine. The total purchase price was P3,280,000, of which P400,000 was allocable to land. Estimated reserves were 180,000 tons. The company expected to extract and sell 2,500 tons per month. The entity purchased new equipment on July 1, 2022 for P1,500,000. The equipment had a useful life of 8 years and has a residual value of P60,000 and can be used in another mining site. Q-21. 18.What amount should be recorded as depletion for 2022?
On July 1, 2022, ABC Company, (using a calendar year), purchased the rights to a mine. The total purchase price was P3,280,000, of which P400,000 was allocable to land. Estimated reserves were 180,000 tons. The company expected to extract and sell 2,500 tons per month. The entity purchased new equipment on July 1, 2022 for P1,500,000. The equipment had a useful life of 8 years and has a residual value of P60,000 and can be used in another mining site. Q-21. 18.What amount should be recorded as depletion for 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2022, ABC Company, (using a calendar year), purchased the rights to a mine. The total purchase price was P3,280,000, of which P400,000 was allocable to land. Estimated reserves were 180,000 tons. The company expected to extract and sell 2,500 tons per month. The entity purchased new equipment on July 1, 2022 for P1,500,000. The equipment had a useful life of 8 years and has a residual value of P60,000 and can be used in another mining site. Q-21.
18.What amount should be recorded as depletion for 2022?
19.What amount should be recorded as
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