27. On January 1, 2018, Trisha Company purchased a property for P13,200,000 which is believe...
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27. On January 1, 2018, Trisha Company purchased a property for P13,200,000 which is believe to have mineral deposits. The entity expects to extract 1,500,000 tons of minerals. On February 2018, through successful exploration , Trisha incurred exploration cost of P4,800,000. Trisha purchased mining equipment on July 1, 2018 for P9,500,000. The mining equipment had a useful life of 8 years.
In 2018, Actual tons of minerals extracted was 20,000 which was all sold for P30.00 per unit. What is the depletion for the year 2018?
a. 240,000
b. 302,667
c. 176,000
d. 366,667
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