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At the beginning of current year, Nilli Company purchased a coal mine for P30,000,000. Removable coal is estimated at 1,500,000 tons. Che entity is required to restore the land at an estimated ost of P3,600,000. The land is estimated to have a value of P3,150,000 after restoration. "he entity incurred P7,500,000 of development cost preparing he mine for production. During the current year, 450,000 ons were removed and 300,000 tons were sold. That total amount of depletion should be recorded for the urrent year? - 11,385,000 10,305,000 3,870,000 7,590,000

At the beginning of current year, Nilli Company purchased a coal mine for P30,000,000. Removable coal is estimated at 1,500,000 tons. Che entity is required to restore the land at an estimated ost of P3,600,000. The land is estimated to have a value of P3,150,000 after restoration. "he entity incurred P7,500,000 of development cost preparing he mine for production. During the current year, 450,000 ons were removed and 300,000 tons were sold. That total amount of depletion should be recorded for the urrent year? - 11,385,000 10,305,000 3,870,000 7,590,000

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 38BE
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Problem 28-12 (IAA) At the beginning of current year, Nilli Company purchased a coal mine for P30,000,000. Removable coal is estimated at 1,500,000 tons. The entity is required to restore the land at an estimated cost of P3,600,000. The land is estimated to have a value of P3,150,000 after restoration. The entity incurred P7,500,000 of development cost preparing the mine for production. During the current year, 450,000 tons were removed and 300,000 tons were sold. What total amount of depletion should be recorded for the current year? а. 11,385,000 b. 10,305,000 3,870,000 d. 7,590,000 с. CS Scanned with CamScanner
Transcribed Image Text:Problem 28-12 (IAA) At the beginning of current year, Nilli Company purchased a coal mine for P30,000,000. Removable coal is estimated at 1,500,000 tons. The entity is required to restore the land at an estimated cost of P3,600,000. The land is estimated to have a value of P3,150,000 after restoration. The entity incurred P7,500,000 of development cost preparing the mine for production. During the current year, 450,000 tons were removed and 300,000 tons were sold. What total amount of depletion should be recorded for the current year? а. 11,385,000 b. 10,305,000 3,870,000 d. 7,590,000 с. CS Scanned with CamScanner
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