Problem 28-3 (IAA) (AA).8oldos On January 1, 2020 Universal Company paid P5,400,000 for property containing natural resource of 2,000,000 tons of ore. The estimated discounted amount of restoring the land after the resource is exhausted is P450,000 and the land will have a value of P650,000 after it is restored for suitable use. Tunnels, bunk houses and other fixed installations are constructed in the amount of P8,000,000. Such expenditures are to be charged to mine improvements. Operations began on January 1, 2021 and resources removed totaled 600,000 tons. During 2022, a discovery was made indicating that available resources after 2022 will total 1,875,000 tons. At the beginning of 2022, additional bunk houses were. constructed in the amount of P770,000. In 2022, only 400,000 tons were mined because of a strike.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Compute the Carrying Amount of Other Asset on December 31, 2022
Problem 28-3 (IAA)
(AA).88
On January 1, 2020 Universal Company paid P5,400,000 for
property containing natural resource of 2,000,000 tons of ore.
The estimated discounted amount of restoring the land after
the resource is exhausted is P450,000 and the land will have a
value of P650,000 after it is restored for suitable use.
Tunnels, bunk houses and other fixed installations are
constructed in the amount of P8,000,000. Such expenditures
are to be charged to mine improvements.
Operations began on January 1, 2021 and resources removed
totaled 600,000 tons.
During 2022, a discovery was made indicating that available
resources after 2022 will total 1,875,000 tons.
At the beginning of 2022, additional bunk houses were.
constructed in the amount of P770,000. In 2022, only 400,000.
tons were mined because of a strike.
Transcribed Image Text:Problem 28-3 (IAA) (AA).88 On January 1, 2020 Universal Company paid P5,400,000 for property containing natural resource of 2,000,000 tons of ore. The estimated discounted amount of restoring the land after the resource is exhausted is P450,000 and the land will have a value of P650,000 after it is restored for suitable use. Tunnels, bunk houses and other fixed installations are constructed in the amount of P8,000,000. Such expenditures are to be charged to mine improvements. Operations began on January 1, 2021 and resources removed totaled 600,000 tons. During 2022, a discovery was made indicating that available resources after 2022 will total 1,875,000 tons. At the beginning of 2022, additional bunk houses were. constructed in the amount of P770,000. In 2022, only 400,000. tons were mined because of a strike.
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