XYZ Company purchased land for P6,000,000. The company expected to extract 1 milion tons of mine from this land over the next 20 years at which time, residual value will be zero During the first two years of the mine's operations, 30.000 tons were mined each year and sold for P80 per lon. The estimate of the total remaining ifetime capacity of the mine was estimated to be P480,000. During the third year, 50.000 tons were mined and sold for P85 per ton How much would be the depletion for the third year?
XYZ Company purchased land for P6,000,000. The company expected to extract 1 milion tons of mine from this land over the next 20 years at which time, residual value will be zero During the first two years of the mine's operations, 30.000 tons were mined each year and sold for P80 per lon. The estimate of the total remaining ifetime capacity of the mine was estimated to be P480,000. During the third year, 50.000 tons were mined and sold for P85 per ton How much would be the depletion for the third year?
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 29CE
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