User Account

All Pages

How much should the company include as depletion

Assignment Help Financial Accounting
Reference no: EM132891083

Problem 1: In January 2018 PM Corporation purchased a mineral mine for P14,400,000 with removable ore estimated by geological surveys at 8,640,000 tons. The property has an estimated value of P1,440,000 after the ore has been extracted. The company incurred P4,320,000 of intangible development costs in preparing the property for the extraction of ore. During 2020, 1,080,000 tons were removed and 960,000 were sold. For the year ended December 31, 2020, how much should the company include as depletion in its cost of goods sold?

a. 1,440,000
b. 1,620,000
c. 1,920,000
d. 2,160,000

Reference no: EM132891083

Questions Cloud

Internet for business plan preparation : What kinds of templates are available? Do these make it easier to write a plan? Find some sample plans online
How much is the capital balance of yvette : After Mary Rose is accepted into the partnership how much is the capital balance of Yvette? Mary Rose decides to buy 25% interest in the Theresa and Yvette.
Compare technological innovation with managerial innovation : Compare technological innovation with managerial innovation based on: (MARIA)
Record a journal entry to recognize tax expense : Zeta Corporation reported taxable income for 2019 of $200,000. Record a journal entry to recognize tax expense, tax payable, and deferred tax for 2019
How much should the company include as depletion : PM Corporation, For the year ended December 31, 2020, how much should the company include as depletion in its cost of goods sold?
Discuss the key reasons for the success of jack ma : Discuss the key reasons for the success of Jack Ma including his communication, culture and background. (Some Keywords: resilience, motivation, leadership, impa
Why is it important to develop hypotheses for a study : Question: Why is it important to develop hypotheses for a study? What purpose does a hypothesis serve and how could it be tested?
Which would be included in the entry to record the depletion : Which would be included in the entry to record the depletion? SMR Coal Mining must restore the property (estimated present value of obligation is P1,200,0000).
Do you think these services are effective : Do you think these services are effective? Would they work for your business? What can you learn about venture capital on the Web? Look at PwC MoneyTree

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare compound entry to reclassify receivables account

Prepare Compound entry to reclassify receivables account and Calculate the amount to be presented as "trade and other receivables" under current assets

  Control risk over cash disbursements

Your preliminary assessment of control risk over cash disbursements is low. You base this assessment on the requirements that each cash disbursement be supported by a purchase requisition, a properly approved purchase order, an approved vender list, ..

  Calculate the appropriate capitalization rate on borrowings

Calculate the appropriate capitalization rate on general borrowings that would be used for capitalization of borrowing costs

  Recorded cost of the completed factory building should be

On February 12 2015, Laker Company purchased a tract of land as a factory site for $175,000. An existing building on the property was razed and construction was begun on a new factory building in March of the same year. The recorded cost of the compl..

  What would be the journal entry recorded by Worldcom

Assume that the estimated line costs for the month of March 2001 is $100 million, What would be the journal entry recorded by Worldcom

  Calculate minimal spending rule requirements for endowment

The asset management fee is 1% of NAV at the beginning of the year. Calculate minimal spending rule requirements for the endowment

  Question amos is a computer consultant and his office is

question amos is a computer consultant and his office is situated in orange california. he and his wife susan used

  How much is the result of the combination

Refer to original facts and effect this: If the fair value of the previous holdings amounts to P400,000, what is the result of the combination?

  How financing structure and payer mix might influence

Explain how its financing structure and payer mix might influence organizational strategy and clinical action. Cite industry examples as appropriate.

  How to create the journal entries to record the transactions

Prepare the journal entries to record the transactions. Jan 1 Issued for cash 62,500 preference shares at par, and 125,000 ordinary shares for P25

  How much can nelson short-term debt

How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.2? Do not round intermediate calculations.

  Calculate Project X discounted payback period

Assume the discount rate is 10 percent. Calculate Project X's discounted payback period. Should the project be accepted

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd