Reference no: EM132868293

Question - On January 1, 2020 Company was organized with an authorized share capital of 10,000,000 consisting of 100,000 shares of 100 par value, one half of which was immediately sold for cash at 110 per share.

In February, the entity acquired a tract of resource land at a cost of 3,000,000 which was paid in cash. Also, the entity purchased foe cash mining equipment of 800,000.

The geological survey of the resource property indicated an estimated content of 1, 000,000 units.

During the year ended December 31, 2020, the entity mined 90,000 units of which 85,000 units were sold for a cash price of 50 per unit.

The entity paid the following during the year:

Mining labor and other direct costs 2,268,000

Administrative expenses 500,000

Required -

1. What the depletion expense reported in 2020 statement of profit or loss.

2. What the depreciation expense reported in 2020 statement of profit or loss.

3. What the dividend declared per share for 2020.