17. The entity incurred the following in exploring a natural resources on January 1,2021 Acquisition cost of the land P10,000,000 Development cost 5,000,000 Exploration cost 6,000,000 Purchase of equipment 3,000,000 The entity expects to mine a total of 5,000,000 tons of natural gas, it is also estimated that 1,000,000 of natural gas will be extracted every year. The useful life of the equipment is 6 years, the equipment is used over a several project not just in that specific natural resources.

Q: 3. How much is the depletion charge in 20x2? 4. Assuming that of the 300,000 ounces of gold…

A:

Q: 24. The entity has the following asset during the year Building 5,000,000 Land 2,000,000…

A: Impairment loss is the amount by which carrying amount of a firm's assets exceeds it's recoverable…

Q: During 2020, Prospect Company incurred P4,000,000 in exploration cost for each of the 15 oil wells…

A: The amount of exploration cost would be apportioned for only successfully drilled oil wells. Out of…

Q: In 2020. XYZ Company paid P4,000.000 to purchase land containing a total estimated 160.000 tons of…

A: Depletion can be defined as a reduction in the value of assets due to extraction of the natural…

Q: At December 31, 2022, Cheyenne Corporation reported the following plant assets. Land       $…

A: Purchase of assets [Land, equipment and building] would be recorded with debit entry to particular…

Q: On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase…

A: DepletionDepletion is an accrual accounting technique used to allocate the cost of extracting…

Q: How much is the depletion charge in 20x5? a. 13,284,000 b. 13,480,000 c. 13,280,000 d. 13,248,000…

A: (a. )option d is correct (b) option d is correct

Q: On January 1, 2020, Nishinoya Company purchased a mineral mine for P26,400,000 with removable ore…

A: Depreciation , amortization , depletion all means the fall in value of assets due to one reason or…

Q: Jubilant Company acquired a tract of land containing an extractable natural resource. The entity is…

A: Provisions for Decommissioning = future cost of restoration x PVF@ 10%,5 years Depletion charge per…

Q: Bronze Company operates a production line which is treated as a cash generating unit.  At year end,…

A: SOLUTION- NON CURRENT ASSETS ARE THE ASSETS WHOSE BENEFITS WILL BE REALIZED OVER  MORE THAN ONE YEAR…

Q: The following costs were incurred by ABCDEFGH, Inc.. during 2020:

A: As per IND AS 16 cost of PPE includes the following Purchase price of asset…

Q: cost of P6,200,000. At December 31, 2021, the market value San Jose Realty Corporation acquired a…

A: An investment property is a piece of real estate purchased with the intention of earning a return on…

Q: In 20x1, ABC Mining Corp. acquired the right to use 1,000 acres of land to mine for gold. The lease…

A: Every natural resource will lose out its value over the period of time. Depletion expense is being…

Q: 5. In 2018, IRIS Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons…

A: Given information: Cost = ₱4,000,000 Residual value = ₱800,000 Expected tons to be extracted =…

Q: The draft balance sheet of Tere Corporation as of December 31, 2019 reported the net property, plant…

A: The valuations will be shown as follows

Q: For $18,048,000, R.R. Michaels Refining purchased land which their experts believe to contain 18.8…

A: Introduction: Depreciation: A decrease in the value of fixed assets of the company because of usage,…

Q: On July 4, 2020, ZY Company purchased the mineral rights to a granite deposit for 2,400,000. It is…

A: The depletion expense is charged on minerals with extraction and minerals sold during the period.

Q: 9. The entity incurred the following in exploring a natural resources on January 1,2021 Acquisition…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: On Jan 1, 20X1 ABC Mining Co. purchased a mine for P2,640,000 with removable ore estimated at…

A: Depletion is the reduction in the value of natural resources due to extraction. In accounting, this…

Q: In 20x1, ABC Mining Corp. acquired the right to use 1,000 acres of land to mine for gold. The…

A: Total capitalized costs = Lease cost + Exploration costs + Intangible development costs + Expected…

Q: Sunny Company paid 4,000,000 for property containing natural resources of 2,500,000 tons of ore. The…

A: Natural resources are gifts of nature without which survival is impossible. In order to fulfill the…

Q: A Company acquired a tract of land containing an extractable natural resource. The entity is…

A: Dismantling charges are those charges which are incurred by a firm for the purpose of restoring the…

Q: On July 4, 2020, Wyoming Mining Company purchased the mineral rights to a granite deposit for…

A: Assets used over the years will face a depreciation each year which refers to the reduction in the…

Q: In 20X4, ABC Mining Inc. purchased land for P5,600,000 that had a natural resource supply estimated…

A: Depletion is a method of cost allocation of for extraction of natural resources such as oils and…

Q: In 20x1, ABC Mining Corp. acquired the right to use 1,000 acres of land to mine for gold. The…

A: Depletion charge is the cost incurred by the company for the depletion of natural resources due to…

Q: Use the following information for the next two questions: In 20x1, BUCOLIC RURAL Co. acquired land…

A: Non- current assets (NCA) - Assets which are not expected to be sold within 1 year and whose…

Q: Lipaopao Corporation acquires a coal mine at a cost of p 5,000,000. Intangible development costs…

A: Initial cost of asset will include cost of acquisition, development cost and present value of…

Q: eight years. However, after all the resources are removed, the equipment will be of no use and will…

A: Depreciatioin is charged to record reductiion in value of asset over the period of time.…

Q: On July 1, 2022, ABC Company, (using a calendar year), purchased the rights to a mine. The total…

A: Depletion:   It is the cost a company spends in the process of mining natural resources from the…

Q: houses and other fixed installations are constructed at a cost of P8,000,000 and such expenditures…

A: Every natural resource will lose out its value over the period of time. Depletion is being charged…

Q: On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which…

A: Particulars Current Appraised Value Original Cost Land P2,200,000 P1,800,000 Warehouse…

Q: how much should the company include as depletion in its cost of goods sold? * 1,440,000

A: The cost incurred in producing the goods sold, such as direct cost, is known as the cost of goods…

Q: 17.ABC Company acquired a tract of land containing an extractable natural resource. ABC Co. is…

A: Solution..   Cost of acquisition = P8,000,000  Estimated restoration cost = P500,000  Development…

Q: Josephine Company acquired a tract of land containing an extractable natural resource. The entity is…

A: Depletion charge can be defined as an expense which is incurred due to the use of the natural…

Q: In January 2022, Utah Corporation entered into a contract to acquire a new machine for its factory.…

A: Total cost of machine = cash price + installation costs = P2,000,000 + P70,000 = P2,070,000

Q: Problem J:  On January 1, 2021, the Reddick Company purchased a mining right for P30,000,000. The…

A: Depletion Cost Depletion cost is similar with the depreciation cost which are applicable in the…

Q: 5. How much is the depletion charge in 20x5? a. 13,284,000 b. 13,480,000 c. 13,280,000 d. 13,248,000…

A: 5. How much is the depletion charge in 20x5?a. 13,284,000 b. 13,480,000 c. 13,280,000 d. 13,248,000…

Q: Proton Corporation incurred the following costs in 2022: Acquisition of R&D equipment with a useful…

A: The advertising costs and engineering costs are not included in the research and development costs.

Q: Use the following information for the next two questions: In 20x1, BUCOLIC RURAL Co. acquired land…

A: The natural resources are reported on their costs or the acquisition price for them.

Q: On June 1, 2021, ABC Company purchased rights to a mine for P30,000,000, of which, P3,000,000 was…

A: Cost of mine = Total purchase value - Amount allocable to land = 30000000 - 3000000 = 27,000,000

Q: Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total…

A: Depletion: Depletion is a process in which the cost of natural resources like oil reserves, mineral…

Q: 1. In 20X4, ABC Mining Inc. purchased land for P5,600,000 that had a natural resource supply…

A: Inventoriable Cost  It is the total direct expense incurred related to the purchase of inventory.…

Q: how much should the company include as depletion in its cost of goods sold?

A: Depletion expenses are the expenses that are charged against the profit due to the usage of natural…

Q: In 20x1, ABC Mining Corp. acquired the right to use 1,000 acres of land to mine for gold. The lease…

A: Depletion is defined as the periodic charge to the expense for the natural resource use. It is used…

Q: In 20X4, ABC Mining Inc. purchased land for P5,600,000 that had a natural resource supply estimated…

A: Solution : Calculation of Cost of Mining Land       Purchase cost 5,600,000.00     Salvage…

Q: 14. On January 1, 2020, DAHLIA Company showed land with a carrying amount of ₱10,000,000 and…

A: The assets will be reported in the balance sheet. The company's value will be determined with the…

Q: In January 2022, Proton Mining Corporation purchased a minera mine for P4,200,000 with removable ore…

A: Under the units-of-activity method of depreciation, the asset's cost (less any salvage value) is…

Q: During 2020, ABC Company acquired a mineral mine for P1,500,000 of which P200,000 was ascribed to…

A: Formula: Total Depletion amount = Depletion per unit x Total extracted units.