Professional Documents
Culture Documents
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2004 Cost of land2001...................................................................... P 50,000
2002 cost to build road................................................................ 5,000,000
2002 mine improvements............................................................ 750,000
Total 20012002 cost................................................................... P5,800,000
Less: Residual value.................................................................... 600,000
Cost subject to depletion............................................................. P5,200,000
Depletion per ton:
P5,200,000/4,000,000 tons = P1.30 per ton
2004 depletion: 5,000 P1.30................................................. P 6,500 B
Building cost (2003)..................................................................... P1,500,000
Less: Salvage value..................................................................... 250,000
Cost subject to depreciation........................................................ P1,250,000
Depreciation per ton:
P1,250,000/4,000,000 tons = P0.31 per ton
2004 depreciation: 5,000 P0.31............................................ P 1,550