During the current year, Puff Company incurred P5,000,000 in exploration cost for each of 20 oil wells drilled in the current year, in West Mindanao. Of the 20 well drilled, 14 were dry holes. The entity used the successful effort method of accounting. None of the oil found is depleted in the current year. What oil exploration expense should be reported in the current year? A. 50,000,000 B. 30,000,000 C. 70,000,000 D. 0
During the current year, Puff Company incurred P5,000,000 in exploration cost for each of 20 oil wells drilled in the current year, in West Mindanao. Of the 20 well drilled, 14 were dry holes. The entity used the successful effort method of accounting. None of the oil found is depleted in the current year. What oil exploration expense should be reported in the current year? A. 50,000,000 B. 30,000,000 C. 70,000,000 D. 0
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 51P
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During the current year, Puff Company incurred P5,000,000 in exploration cost for each of 20 oil wells drilled in the current year, in West Mindanao. Of the 20 well drilled, 14 were dry holes. The entity used the successful effort method of accounting. None of the oil found is depleted in the current year.
- What oil exploration expense should be reported in the current year?
A. 50,000,000
B. 30,000,000
C. 70,000,000
D. 0
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