On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for an area of interest with removable ore estimated by geological surveys at 10,000,000 tons. Mina is required by the national government to restore the area of interest after the extraction of theestimated units of reserves, Mina Company estimates that it will take 10 years to fully extract thereserves and estimates its restoration cost to be P10,000,000. The relevant discount rate is 10% (use 3 decimal places to round off the present value factor). The Company also incurred P2,150,000 of development costs in preparing the property for theextraction of the ore. During 2020, 540,000 tons were mined. How much is the depletion/amortization expense for the year ended December 31, 2020?

Q: On January 1, 2018, Nickel Co. purchased a land for P12,000,000. The company expected to extract…

A: Year 2018 Purchase price of land = P12,000,000 Expected minerals to be extracted = 2,000,000…

Q: Maggie Company expects to extract 20 million tons of coal from a mine that cost $12 million. If no…

A: The depletion expense is charged on mines that are extracted naturally.

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: n 2018, IRIS Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons of…

A: Given information: Purchase price = ₱4,000,000 Total estimated tons = 160,000 Salvage value =…

Q: Lusaka Rock buster has recently purchased an item of earth moving plant at a total cost of K24…

A: Depreciation is charged on the assets indicating the decrease in the value of the asset.…

Q: Bowman Corporation is considering an investment in special-purpose equipment to enable the company…

A: Formula used: Payback Period = Equipment costsNet Income including Depreciation Return on Average…

Q: in 2020, ABC Company paid P4,000,000 to purchase land containing a total estimated 160,000 tons of…

A: Depletion refers to the allocation or expense of extracting natural resources from the surface of…

Q: In January 2019, Straw Corporation purchased a mineral mine for P9,800,000 with removable ore…

A: Depletion expense is the exploration cost and the development cost charged to the income statement.…

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: On January 1, 2020, Sapphire Mining Company purchased land with valuable natural ore deposits for…

A: The depletion expense refers to the decrease in the value of the natural resource used in the…

Q: On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for…

A: Government Fees P12,90,00,000 Present value of restoration cost (P10000000 * 0.385) P38,50,000…

Q: The Company also incurred P2,150,000 of development costs in preparing the property for the…

A: Carrying value is an important part of accounting it is measure of value in which the value of an…

Q: On January 2, 2020, the Wally Company purchased land for P 450,000, from which it is estimated that…

A: Depletion is the reduction in value of something due to regular usage.

Q: On January 2, 2020, the Wally Company purchased land for P 450,000, from which it is estimated that…

A: 1) Unit depletion Rate per ton = (P450,000 + P80,000) - P30,000 / 400,000 tons…

Q: In January 2019, Straw Corporation purchased a mineral mine for P9,800,000 with removable ore…

A: Depletion is an accounting concept used by the timber, oil and gas and mining industries to account…

Q: Qasio Private Limited (Pvt) developed a new intangible product. In developing this intangible asset,…

A: Date Particulars Dr (R) Cr (R) 2020       Jul-20 Intangible Assets 50000     Cash   50000…

Q: Early in the current year, Tokay Co. purchased the Silverton Mine at a cost of $20,000,000. The mine…

A: Natural resources: Resources that occur from nature are called natural resources. It is not…

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: What is the total carrying value of the manufacturing plant (machine, and equipment) as of December…

A: All the costs incurred to make the asset ready for its intended use shall be capitalized to the…

Q: In 2021, the Marion Company purchased land containing a mineral mine for $1,600,000. Additional…

A: Calculate the depletion of mine for the year 2021 and 2022 as follows: 1. Calculate depletion for…

Q: In 2020, Tableta Company paid P4,000,000 to purchase a land containing a total estimated 160,000…

A: Under straight line method, Depreciation expense for equipment can be calculated as: = (Cost -…

Q: On January 2

A: As per the provision given in IND AS 16, cost of property plant and equipment includes the…

Q: Reveille, Inc., purchased Machine #204 on April 2021, and placed the machine into production on…

A: Depreciation is the depletion in the value of the asset due to use of the asset.

Q: On January 1, 2020 Universal Company paid P5,400,000 for property containing natural resource of…

A: Wasting assets refers to the resources containing oil, natural gas, ores, mines quarry etc. In these…

Q: On January 2, 2018, ABC Company purchased land for ₱450,000, from which it estimated that 400,000…

A: Cost of Sales : It is the amount of cost that made the goods available for sale which typically will…

Q: in 2020, Tableta company paid P4,000,000 to purchase a land containing a total estimated 160,000…

A: Annual depreciation= (cost of the assets  - residual value) / life of the assets = (P1,500,000-0) /…

Q: In March 2020, L&P Corp., a mining and construction company, purchased for $5,600,000 a mine…

A: Wasting assets: These are the assets which will have only a limited useful life and the value of…

Q: On January 2, 2019, Whistler Company purchased land for $450,000, from which it is estimated that…

A: Depletion in accounting refers to the technique used in allocating or assigning the cost of…

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

A: The questions are multiple choice questions Required  Choose the Correct Option.

Q: On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for…

A: Government Fees P12,90,00,000 Present value of restoration cost (P10000000 * 0.385) P38,50,000…

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: On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for…

A: Government Fees P12,90,00,000 Present value of restoration cost (P10000000 * 0.385) P38,50,000…

Q: How much is the computed depletion rate in 2021?  How much is the depletion in 2022?  How much is…

A: Unit Depletion rate =  (Cost - Residual Value)/Expected Resource

Q: On January 2, 2018, ABC Company purchased land for ₱450,000, from which it estimated that 400,000…

A: SOLUTION- DEPLETION IS A METHOD FOR ALLOCATING THE EXPENSE OF HARVESTING NATURAL PRODUCTS FROM EARTH…

Q: On January 2021, AAA Company paid the national government a fee in the amount of P129,000,000 for an…

A: Depletion method is applied for assets such as mines, oil industries where exploration of natural…

Q: On May, 1, 2020, Star Mines Inc. purchased an ore mine for $2,400,000 to access an estimated…

A: Solution: The ore mine should be recorded at = Purchase cost of mine + Development cost + Present…

Q: Bowman Corporation is considering an investment in special-purpose equipment to enable the company…

A: Pay back Period  = Cash Outflow / Annual Cashflow  Return on Average Investment  = Net Income /…

Q: On January 1, 2018, Spring Co. purchased a land for $12,000,000. The company expected to extract…

A:

Q: Grant Company has acquired a machine and equipment on January 2, 2018. The cost of the machine…

A: Calculation of Depreciation   1. MACHINE Depreciation on Machinery = cost-residual value / useful…

Q: On March 25, 2020, Blue Steel co. purchased a new extrusion machine for Php 3,344,015 with an…

A: Formula: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) /…

Q: On 1 April 2021, PHI plc acquired a new machine for a price of £25,000. On the same day, PHI paid…

A: Working of depreciation on diminishing balance @ 30%           Year Book Val   Dep Net Val…

Q: On January 1, 2018, Nickel Co. purchased a land for P12,000,000. The company expected to extract…

A: Cost of land = $12,000,000 Expected extraction = 2,000,000 Time = 20 years Capacity raised =…

Q: 000 tons. In 2018, the company mined 140,000 tons and sold 130,000 tons. The company uses a FIFO…

A: Depletion Expense: The cost allocation method used for natural resources like mining deposits,…

Q: On January 2, 2018, ABC Company purchased land for ₱450,000, from which it estimated that 400,000…

A: When fixed assets are purchased, they will be recorded at their purchase cost. When they are put…

Q: During 2021, Bondoc Corporation acquired a mineral mine for P900,000 of which P150,000 was ascribed…

A: Depletion of mine will be on the basis of amount of mineral extracted during the period. Accumulated…

Q: In January 2020, Fritz Mining Corporation purchased a mineral mine for $6,300,000 with removable ore…

A: Calculate the depletion cost per unit as follows: Depletion cost per unit = (Purchase cost - Ore…

Q: On January 1, 2014, Barbed Company purchased an equipment for P900,000, with an estimated useful…

A: 1. Recoverable value is higher of fair value less cost of sale and value in use       fair value -…