In 20x1, ABC Mining Corp. acquired the right to use 1,000 acres of land to mine for gold. The leasecost is ₱50,000,000, and the related exploration costs on the property amounted to ₱10,000,000. Itis the policy of ABC Mining Corp. to capitalize all costs of exploration and evaluation of mineralresources. Intangible development costs for drilling, tunnels, shafts, and wells incurred beforeopening the mine amounted to ₱85,000,000. At the end of the mine’s economic useful life, ABCMining Corp. is required by legislation to restore the site. Estimated restoration costs have a fairvalue of ₱5,000,000. ABC Mining Corp. estimates that the mine will provide approximately100,000,000 ounces of gold. ABC extracted 300,000 ounces of gold in 20x2. How much is the depletion charge in 20x2?

B3.

Sheridan Company acquires a coal mine at a cost of $1750000. Intangible development costs total $358000. After extraction has occurred, Sheridan must restore the property (estimated fair value of the obligation is $190000), after which it can be sold for $202000. Sheridan estimates that 5000 tons of coal can be extracted. What is the amount of depletion per ton? $384 $419 $460 $350

On January 1, 2023, IIV purchased the right to extract oil from proven oil reserves on provincial government land. It paid $1,900,000 for production equipment and debited the "Equipment" account for the purchase price. Operations began on that day, and the agreement provided for three years of operations (until December 31, 2025), at which time it was estimated the oil reserves would be exhausted. DMH planned to extract the oil evenly over the three-year period and therefore decided to depreciate the cost of the equipment using the straight-line method, with no residual or salvage value. Included in the agreement with the government was a provision that the business would clean up the site at the end of the three years. On the date of purchase, IIV'Ss engineers and accountants estimated that the total cost to clean up the site on December 31, 2025 would total $350,000, and the discount rate to be applied to that future cost would be 8%. (Note: clean-up costs are also being debited to…