What is the depletion

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Problem - On July 1, 2019, an entity purchased the rights to a mine for P20,000,000, of which P2,000,000 was allocable to the land. Estimated reserves were 1,500,000 tons. The entity expected to extract and sell 25,000 tons per month. The entity purchased mining equipment on July 1, 2019 for P8,000,000. The mining equipment had a useful life 8 years. However, after all the resource is removed, the equipment will be of no use and will be sold for P500,000. What is the depletion for 2019?

Reference no: EM132948736

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