In 2020, Tableta Company paid P4,000,000 to purchase a land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is P800,000.   On March 30, 2021, Tableta Company purchased mining equipment costing P1,500,000. The useful life of the equipment is 10 years.   Extraction activities began in 2021 and by the end of the year, 20,000 tons had been recovered and sold.   The depreciation expense pertaining to the mining equipment in 2021 amounted to?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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15.

In 2020, Tableta Company paid P4,000,000 to purchase a land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is P800,000.

 

On March 30, 2021, Tableta Company purchased mining equipment costing P1,500,000. The useful life of the equipment is 10 years.

 

Extraction activities began in 2021 and by the end of the year, 20,000 tons had been recovered and sold.

 

The depreciation expense pertaining to the mining equipment in 2021 amounted to?

 
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