During 2004, Bolton Corporation acquired a mineral mine for P3,000,000 of which P400,000 was ascribed to land value after the mineral has been removed. Geological surveys have indicated that 10 million units of the mineral could be extracted. During 2004, 2,000,000 units were extracted and 1,600,000 units were sold. What is the amount of depletion expensed for 2004? P480,000 P520,000 P416,000 P600,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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During 2004, Bolton Corporation acquired a mineral mine for P3,000,000 of which P400,000 was ascribed to
land value after the mineral has been removed. Geological surveys have indicated that 10 million units of the
mineral could be extracted. During 2004, 2,000,000 units were extracted and 1,600,000 units were sold.
What is the amount of depletion expensed for 2004?
P480,000
P520,000
P416,000
P600,000
Transcribed Image Text:During 2004, Bolton Corporation acquired a mineral mine for P3,000,000 of which P400,000 was ascribed to land value after the mineral has been removed. Geological surveys have indicated that 10 million units of the mineral could be extracted. During 2004, 2,000,000 units were extracted and 1,600,000 units were sold. What is the amount of depletion expensed for 2004? P480,000 P520,000 P416,000 P600,000
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