During the current year, Mine View Company incurred P2,000,000 in exploration cost for each of the 15 oil wells drilled in the current year In Surigao. Of the 15 wells drilled , 8 were dry holes. The entity used the successful effort method of accounting. None of the oil found is depleted in the current year. What oil exploration expense should be reported in the income statement for the current year .

During the current year, Mine View Company incurred P2,000,000 in exploration cost for each of the 15 oil wells drilled in the current year In Surigao. Of the 15 wells drilled , 8 were dry holes. The entity used the successful effort method of accounting. None of the oil found is depleted in the current year. What oil exploration expense should be reported in the income statement for the current year .

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 56P

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