Problem 28-10 (IAA)Radical Company acquired a mineral right for P30,000,000 inJanuary 2020. The mine has a recoverable ore estimated at4,000,000 tons.After it has extracted all the ore, the entity will be required bylaw to restore the land to the original condition at a discountedamount of P2,000,000. The entity believed that the propertycan be sold afterwards for P5,000,000.Early in 2020, roads were constructed and other developmentcosts were incurred to aid in the extraction and transportationof the mined ore at a cost of P6,000,000. In 2020, 200,000 tons ofore were mined and sold.On December 31, 2021 a new survey made by a new miningengineer indicated that 5,000,000 tons of ore were available formining. In 2021, 225,000 tons of ore were extracted and sold.What depletion expense should be recognized for 2021?a. 1,650,000b. 1,350,000с. 1,856,250d. 1,410,000CS Scanned with CamScanner

Name: Problem 28-10 (IAA)Radical Company acquired a mineral right for P30,0
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Description: Problem 28-10 (IAA)Radical Company acquired a mineral right for P30,000,000 inJanuary 2020. The mine has a recoverable ore estimated at4,000,000 tons.After it has extracted all the ore, the entity will be required bylaw to restore the land to the or

In mining there is depletion based depreciation accounting is done and based on the minerals are…

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Radical Company acquired a mineral right for P30,000,000 January 2020. The mine has a recoverable ore estimated 1,000,000 tons. After it has extracted all the ore, the entity will be required aw to restore the land to the original condition at a discoun amount of P2,000,000. The entity believed that the prope can be sold afterwards for P5,000,000.

Radical Company acquired a mineral right for P30,000,000 January 2020. The mine has a recoverable ore estimated 1,000,000 tons. After it has extracted all the ore, the entity will be required aw to restore the land to the original condition at a discoun amount of P2,000,000. The entity believed that the prope can be sold afterwards for P5,000,000.

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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