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Question - On July 1, 2020, FREESIA Company purchased the rights to a mine for 13,200,000, of which 1,200,000 was allocable to the land. Estimated reserves were 1,500,000 tons. The entity expects to extract and sell 25,000 tons per month. The entity purchased mining equipment on July 1, 2020 for 9,500,000. The mining equipment had a useful life of eight years. However, after all the resources are removed, the equipment will be of no use and will be sold for 500,000. What is the depletion for 2020? Solutions must be presented in good accounting form.
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