KLM Mining Company constructed a building costing P2, 800,000 on the mine property. The estimated residual value will not benefit the entity and will be ignored for purposes of computing depreciation. The building has an estimated life of 10 years. The total estimated recoverable output from the mine is 500,000 tons. The production of the first four years of operations was: First year 100,000 tons Second year 100,000 tons Third year Shut down, no output Fourth year 100,000 tons Determine the depreciation for the fourth year. 490,000 b. 560,000 c. 210,000 d. 336,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

KLM Mining Company constructed a building costing P2, 800,000 on the mine property. The estimated residual value will not benefit the entity and will be ignored for purposes of computing depreciation.

The building has an estimated life of 10 years. The total estimated recoverable output from the mine is 500,000 tons. The production of the first four years of operations was:

First year 100,000 tons

Second year 100,000 tons

Third year Shut down, no output

Fourth year 100,000 tons

Determine the depreciation for the fourth year.

490,000 b. 560,000 c. 210,000 d. 336,000

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions