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What amount of exploration cost should be reported

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Reference no: EM132969370

Problem - During 2019, the company incurred P4,000,000 in exploration cost for each of 15 oil wells drilled in 2019. Of the 15 wells drilled, 10 were dry holes. The company used the successful effort method of accounting. The entity depleted 40% of the oil discovered in 2019. What amount of exploration cost should be reported in the December 31, 2019 statement of ?nancial position?

Reference no: EM132969370

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