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Question - At the beginning of the current year, Vorst Company purchased a mineral mine for P26,400,000 with removable ore estimated at 1,200,000 tons. After it has extracted all the ore, the entity will be required by law to restore the land to its original condition at an estimated cost of P2,200,000. The present value of the estimated restoration cost is P1,800,000. The entity believed that it will be able to sell the property afterwards for P3,000,000. During the current year, the entity incurred P2,000,000 of exploration cost and 1,600,000 development cost preparing the mine for production, removed 80,000 tons of ore and sold 60,000 tons. What total amount of depletion should be included in cost of good sold for the current year?
a. 1,440,000
b. 1,500,000
c. 1,920,000
d. 1,590,000
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