On July 1,2021, Phantom Corporation purchased the rights to a mine for a total purchase price of P10,000,000, of which P1,000,000 was allocable to the land. Reserves were estimated at 900,000 tons and the entity expects to extract and sell 15,000 tons per month. The entity also acquired new equipment on the same date for P5,000,000 and had a useful life of 6 years with no residual value. Phantom is a calendar year entity. What is the depletion for the current year? O P1,000,000 O P1,800,000 O P2,000,000 O P900,000

On July 1,2021, Phantom Corporation purchased the rights to a mine for a total purchase price of P10,000,000, of which P1,000,000 was allocable to the land. Reserves were estimated at 900,000 tons and the entity expects to extract and sell 15,000 tons per month. The entity also acquired new equipment on the same date for P5,000,000 and had a useful life of 6 years with no residual value. Phantom is a calendar year entity. What is the depletion for the current year? O P1,000,000 O P1,800,000 O P2,000,000 O P900,000

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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