38 Transcribed Image Text: On July 1,2021, Phantom Corporation purchased the rights to a mine for a total purchase price of P10,000,000, of which P1,000,000 was allocable to the land.

38 Transcribed Image Text: On July 1,2021, Phantom Corporation purchased the rights to a mine for a total purchase price of P10,000,000, of
which P1,000,000 was allocable to the land. Reserves were estimated at 900,000 tons and the entity expects to
extract and sell 15,000 tons per month.
The entity also acquired new equipment on the same date for P5,000,000 and had a useful life of 6 years with no
residual value. Phantom is a calendar year entity.
is the depletion for the current year?
O P1,000,000
O P1,800,000
O P 2,000,000
O P 900,000
Next
• Previous

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer