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On July 1, 2011, Lam Company, a calendar year corporation, purchased the rights to a mine. The total purchase price was P7,000,000, of which P1,000,000 was allocated to the land. Estimated reserves were 1,500,000 tons. Lam expects to extract and sell 25,000 tons per month. Lam purchased new equipment on July 1, 2011. The equipment cost P4,000,000 and had a useful life of 8 years. However, after all the resource is removed, the equipment will be of no use and will be sold for P250,000.
Problem 1: If sales and production conform to expectations, what is the depletion for 2011?
Joint-cost allocation. Clover Dairy Products Corp. buys one input, full-cream milk, and refines it in a churning process. From each gallon of milk Clover produces three cups of butter and nine cups of buttermilk. During May 2014, Clover bought 12,000..
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Fish Co had Net Income of $150, paid $20 in dividends, and sold new stock for $35. Beginning equity for the year was $680. What is the ending equity
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