Reference no: EM132690382
Question - In 2016, Vermilion City Mining, Inc. purchased property with natural resources for P5,400,000. The property was relatively close to a large city and had an expected residual value of P700,000.
The following information relates to the use of the property:
In 2016, Vermilion City spent P300,000 in development costs and P500,000 in buildings on the property. Vermilion City does not anticipate that the buildings will have any utility after the natural resources are depleted.
In 2017 and 2019, P200,000 and P700,000, respectively, were spent for additional developments on the mine.
The tonnage mined and estimated remaining tons for years 2016-2020 are as follows:
|
Year
|
Tons Extracted
|
Estimated Tons Remaining
|
|
2016
|
0
|
4,000,000
|
|
2017
|
1,200,000
|
2,800,000
|
|
2018
|
1,100,000
|
1,800,000
|
|
2019
|
800,000
|
900,000
|
|
2020
|
900,000
|
0
|
Note: Round off per unit information to the nearest centavo. Round off amounts to the nearest peso.
Based on the above information, answer the following:
How much is the depletion expense for 2016?
How much is the depreciation expense for 2016?
How much is the depletion expense for 2017?
How much is the depreciation expense for 2017?
How much is the depletion expense for 2018?
How much is the depreciation expense for 2018?
How much is the depletion expense for 2019?
How much is the depreciation expense for 2019?
How much is the depletion expense for 2020?
How much is the depreciation expense for 2020?