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What is the depletion and depreciation, respectively, for 2013

What is the depletion and depreciation, respectively, for 2013

FINANCIAL ACCOUNTING
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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What is the depletion and depreciation, respectively, for 2013?
 
A. Depletion: P 3,600,000; Depreciation: P 180,000
B. Depletion: P 3,240,000; Depreciation: P 420,000
C. Depletion: P 3,600,000; Depreciation: P 420,000
D. Depletion: P 3,240,000; Depreciation: P 180,000
 
 
 
2014 depletion and depreciation:
 
A. P 4,149,474; P 378,000
B. 4,149,474; 198,000
C. 3,978,000; 198,000
D. 3,978,000; 378,000
In 2012, Wanda Mining Company purchased property with natural resources for P12,400,000. The property was relatively close to a large city and had an expected residual value of P3,000,000. However, P1,200,000 will have to be spent to restore the land for use. The following information relates to the use of the property: a. In 2012, Wanda spent P800,000 in development costs and P600,000 in buildings on the property. Wanda does not anticipate that the buildings will have any utility after the natural resources are depleted. b. In 2013 and 2015, P600,000 and P1,600,000, respectively, were spent for additional developments on the mine. c. The tonnage mined and estimated remaining tons for years 2012-2016 are as follows: Year Tons Extracted Estimated Tons Remaining 5,000,000 3,500,000 2,000,000 2012 2013 1,500,000 2014 1,800,000 2015 1,700,000 900,000 900,000 2016
Transcribed Image Text:In 2012, Wanda Mining Company purchased property with natural resources for P12,400,000. The property was relatively close to a large city and had an expected residual value of P3,000,000. However, P1,200,000 will have to be spent to restore the land for use. The following information relates to the use of the property: a. In 2012, Wanda spent P800,000 in development costs and P600,000 in buildings on the property. Wanda does not anticipate that the buildings will have any utility after the natural resources are depleted. b. In 2013 and 2015, P600,000 and P1,600,000, respectively, were spent for additional developments on the mine. c. The tonnage mined and estimated remaining tons for years 2012-2016 are as follows: Year Tons Extracted Estimated Tons Remaining 5,000,000 3,500,000 2,000,000 2012 2013 1,500,000 2014 1,800,000 2015 1,700,000 900,000 900,000 2016
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