On January, 2023, Big Company purchased a mineral mine for P2,640,000 with removable ore estimated at 1,200,000 tons.  After it has extracted all the ore, Big Company will be required by law to restore the land to its original condition at an estimated cost of P220,000.  The present value of the estimated restoration costs is P180,000.  Big Company believes it will be able to sell the property afterwards for P300,000.  During 2023, Big Company incurred P360,000 development costs preparing the mine for production and removed and sold 60,000 tons of ore.  In its 2023 Income Statement, what amount should Big Company report as depletion?   a. 135,000 b. 144,000 c. 150,000 d. 159,000

Mack Company acquired property for $20,000,000 containing platinum ore mine on January 1, 2019. Mack estimated that the mine would produce 500,000 tons of ore and once mining is completed, the property could be sold for $200,000. During 2019, 2020, and 2021, Mack recovered 25,000, 50,000, and 125,000 tons of ore, respectively. As a result, the mine should appear on Mack's balance sheet at December 31, 2021 at what amount (net of depletion)?

Cimi Manufacturing had the following transactions related to the purchase of long-term assets. During 2025, purchased land for $380,000 with plans to build a new facility.  The company pays $23,500 to demolish a building that was on the land and an additional $17,000 to grade the land in preparation for the new building.  Construction cost of the new building was $$2,100,000.  The parking lot and related lighting cost $41,000.  Cimi's employee wages during this time of construction were $214,000.  On Nov 5, 2025, Cimi purchased machinery to be install in the new facility.  the machine had a price of $28,000 with term 2/10, n/30, and FOB shipping point.  Cimi always pays within the discount period.  Transporation cost of $680 wer paid.  Additionally, the following costs related to installation of the machine were incurred:  installation cost $7,600 of which $5,000 of this was parts, testing costs of $900.  During installation, damage to a neighboring company's warehouse occured, costing…

On June 1, 2021, ABC Company purchased rights to a mine for P30,000,000, of which, P3,000,000 was allocable to the land. Estimated reserves were 2,250,000 tons. ABC expected to extract and sell 37,500 tons per month. ABC purchased mining equipment on September 30, 2021 for P12,000,000. The mining equipment had a useful life of nine years. However, after all the resource is removed, the equipment will be of no use and will be sold for P750,000. ANSWER THE QUESTION: What is the depletion for 2021?