In 2018, IRIS Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is ₱800,000. Extraction activities began in 2019 and by the end of the year, 20,000 tons had been recovered and sold. In 2020, geological studies indicated that the total amount of mineral deposits had been underestimated by 60,000 tons. During 2020, 30,000 tons were extracted and 28,000 tons were sold. What is the carrying value of the wasting asset? ₱ 3,000,000 ₱ 3,040,000 ₱ 3,180,000 ₱ 3,208,000
In 2018, IRIS Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is ₱800,000. Extraction activities began in 2019 and by the end of the year, 20,000 tons had been recovered and sold. In 2020, geological studies indicated that the total amount of mineral deposits had been underestimated by 60,000 tons. During 2020, 30,000 tons were extracted and 28,000 tons were sold. What is the carrying value of the wasting asset? ₱ 3,000,000 ₱ 3,040,000 ₱ 3,180,000 ₱ 3,208,000
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 29CE
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In 2018, IRIS Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is ₱800,000. Extraction activities began in 2019 and by the end of the year, 20,000 tons had been recovered and sold. In 2020, geological studies indicated that the total amount of mineral deposits had been underestimated by 60,000 tons. During 2020, 30,000 tons were extracted and 28,000 tons were sold. What is the carrying value of the wasting asset?
₱ 3,000,000
₱ 3,040,000
₱ 3,180,000
₱ 3,208,000
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