Calculate the depletion expense for 2019. Calculate the total depreciation expense for 2019. Calculate the interest expense
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Calculate the total depreciation expense for 2019.
Calculate the interest expense for 2019.
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On January 1, 2018, Micah Joy Mining Corp. acquired property containing mineral resources for P150,000,000. Total costs of exploration and intangible development costs was P8,000,000. Micah Joy is mandated by the Mining Act to restore the site after 4 years. Based on most reliable measurement, the amount of restoration cost is P12,000,000 and current market-based discount rate is 10%. On the same date, Micah Joy acquired movable and immovable tangible equipment. The movable tangible equipment amounted P6,000,000 while the immovable tangible equipment amounted to P9,000,000. Geologists estimate that the total units estimated to be extracted is 12,000,000. It is estimated that, on the average, 1,500,000 units will be extracted each year during the useful life of the wasting assets. The movable equipment has a useful life of 20 years while the immovable equipment has an estimated useful life of 10 years. Actual units extracted in 2018 and 2019 were 1,600,000 and 1,400,000, respectively. On January 1, 2018, Micah Joy Mining Corp. acquired property containing mineral resources for P150,000,000. Total costs of exploration and intangible development costs was P8,000,000. Micah Joy is mandated by the Mining Act to restore the site after 4 years. Based on most reliable measurement, the amount of restoration cost is P12,000,000 and current market-based discount rate is 10%. On the same date, Micah Joy acquired movable and immovable tangible equipment. The movable tangible equipment amounted P6,000,000 while the immovable tangible equipment amounted to P9,000,000. Geologists estimate that the total units estimated to be extracted is 12,000,000. It is estimated that, on the average, 1,500,000 units will be extracted each year during the useful life of the wasting assets. The movable equipment has a useful life of 20 years while the immovable equipment has an estimated useful life of 10 years. Actual units extracted in 2018 and 2019 were 1,600,000 and 1,400,000, respectively.
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Calculation of the depletion expense for 2019 To calculate the depletion expense for 2019 we need to determine the depletion rate per unit and then mu... View the full answer
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
Posted Date:
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