1,485,00

0
Your answer

2.  What is the depletion in 2024?

1,350,000
Your answer
3.  What is the depreciation in 2024?
1,890,000
Your answer

4.

128,520, RE 4,050,000
000 CAPITAL LIQUIDATED 1,620,000
Your answer
DIVIDEN PAYABLE 5,670,000
 CAPITAL LIQUIDATED 1,620,000
Capital liquidated 4,860,000
6,480,000

19,845,0
00
Your answer
Orig. est 10,000,000
extracted 2022 3,000,000
Balance 7,000,000 6,000,000
3,500,000
2,500,000

2,592,00
0
Your answer
7.

1,260,00
0
Your answer

2,416,00
Your
0 answer
 4.09
Your a nswer

10.

8,640,00
Your
0 answer

1,515,000
12.

2,430,00
0
Your answer

13.

2,160,00
0
Your answer

14. What is the depreciation of the equipment for 2021?

1,350,000
Your answer
 20,493,0
00
Your answer

7,200,00
0
Your answer
17. Assuming the company used full cost method, what amount should be capitalized as cost of wasting
9,000,000 asset or resource property?
Your answer
18.
 29,910,0
00
Your answer

7.64
Your answer

20.

7.87
Your answer

21.
 3,600,00
0
Your answer

10,740,6
00
Your answer

3,600,00
0
Your answer

24. For multiple choice theories, write the CAPITAL LETTER of the correct answer.

D
Your a nswer
Your answer
26

C
Your answer

D
Your answer

Your answer

C
Your answer

D
 D
Your answer

38,161,2
Your 32.  What is the depletion in 2021?
00 answer
5,724,180
Your answer
33.  What is the carrying amount of the wasting asset on December 31, 2021?
32,437,020
Your answer
34.  What is the depletion in 2022?
6,846,000
Your answer
35.  What is the carrying amount of the wasting asset on December 31, 2022?
27,391,020
Your answer
 Acquisition Cost 13,500,000
Estimated output 1,000,000 tons
Mining Equipment 21,600,000 Useful life 6-8 years

Depreciation 2021
Mining Equipment
Estimated output
Depreciation rate
Production in 2021
Depreciation 2021
21,600,000 Acquisition Cost
1,000,000 Estimated output
21.6 Depletion rate
200,000 Production in 2024
4,320,000 Depletion in 2024

CA of Mining Equipment
Mining Equipment
Depreciation 2021
CA of Mining Equipment
Depreciation 2022
Production in 2022
Depreciation rate
Depreciation 2022
21,600,000 CA of Mining Equipment
4,320,000 Depreciation 2023
17,280,000 CA of Mining Equipment
Remaining output
Depreciation rate
250,000 Depreciation 2024
21.6
5,400,000

CA of Mining Equipment CA of Mining Equipment

Mining Equipment 21,600,000 Remaining life
Depreciation 2021 4,320,000 Depreciation 2023
2021 CA of Mining Equipment 17,280,000
Depreciation 2022 5,400,000
2022 CA of Mining Equipment 11,880,000

Retained earnings 4,050,000

Add: Acc. Depletion 6,750,000
Total 10,800,000
Less: Capital liquidated 4,860,000 2,700,000
Depletion in ending inventory 270,000 50,000
Maximum dividend 5,670,000 54
5,000
Share Capital 135,000,000
Retained Earnings 4,050,000
Capital liquidated 4,860,000
134,190,000
Declaration (maximum dividend) 5,670,000
Shareholder's equity 128,520,000
 Share Capital 135,000,000
Retained Earnings 0
Capital liquidated 6,480,000
Shareholder's equity 128,520,000

Acquisition Cost
Restoration Cost 50,400,000
Development cost 3,600,000
Cost of WA 2021 1,800,000
2022 Add'tl Dev. Cost 55,800,000
Cost of WA 2022 1,800,000
Residual Value 57,600,000
Building 9,000,000
5,400,000 output method
Cost of WA 2022
Expected Extraction 57,600,000
Depletion rate 10,000,000
Extraction 2022 4.86
Depletion 2022 3,000,000
14,580,000
CA of WA 2022
revised estimate Residual Value 43,020,000
extracted 2023 revised estimate 9,000,000
tons rem. End of 2023 Depletion rate 6,000,000
Extraction 2023 5.67
Depletion 2023 3,500,000
19,845,000

Acquisition Cost
Restoration Cost 47,520,000
Development cost 3,240,000
Cost of WA 6,480,000
Estimated extraction 57,240,000
Residual value 1,200,000
5,400,000
Cost of WA
Residual value 57,240,000
Estimated extraction 5,400,000
Depletion rate 1,200,000
extraction 2021 43.20
Depletion expense 60,000
2,592,000

Acquisition Cost
Restoration Cost 16,200,000
Development cost 1,440,000
Exploration cost 5,760,000
Cost of WA 6,300,000
29,700,000
Estimated Extraction
Residual Value 1,000,000
Production Eqpmt 4,500,000
8,280,000
Cost of WA
Residual Value 29,700,000
Estimated Extraction 4,500,000
Depletion rate 1,000,000
Extraction for the CY 25.20
Depletion expense 50,000
1,260,000
Acquisition Cost 18,000,000
Restoration Cost
Development cost 2,880,000
Exploration cost
Cost of WA 20,880,000

Residual Value 3,600,000

Estimated Extraction 4,000,000
Depletion rate 4.32
Extraction 2021 500,000
Depletion expense 2021 2,160,000

Revised Estimate 5,000,000

Extraction 2022 800,000
Remaining Extraction 4,200,000

CA of WA 18,720,000
Residual Value 3,600,000
Extraction 2022 800,000
Depletion rate 3.02 3.02
Depletion expense 2022 2,419,200 2,416,000

Expected Extraction 4,000,000 tons

Residual Value 1,800,000
Acquisition Cost 16,000,000
Restoration Cost 2,160,000
Cost of WA 18,160,000
Depletion Rate 4.09

Acquisition Cost 64,800,000

Restoration Cost
Development cost 19,440,000
Exploration cost
Cost of WA 84,240,000
Expected Extraction 2,160,000
Residual Value 6,480,000
Depletion rate 36
Extraction 2021 270,000
Depletion expense 2021 9,720,000
Ending Inventory 30,000
Ending Inventory for depletion 1,080,000
Depletion COGS 8,640,000
or 240,000
8,640,000

Acquisition Cost 18,000,000

Restoration Cost
Development cost
Exploration cost
Cost of WA 18,000,000
Residual Value 5,400,000
Expected Extraction 10,000,000
Depletion rate 1.26
Tons quarried in 2020 4,000,000 40%
Depletion expense 2020 5,040,000
CA of WA 12,960,000
Tons quarried in 2021 1,500,000
Revised estimate 7,500,000
Depletion rate 1.01 1.01
Depletion expense 2021 1,512,000 1,500,000
1,515,000

Acquisition Cost 54,000,000

Restoration Cost 3,600,000
Development cost 10,800,000
Exploration cost
Cost of WA 68,400,000
Expected Extraction 4,000,000
Residual Value 9,000,000
Depletion rate 14.85
Extraction 2021 200,000
Depletion expense 2021 2,970,000
Revised estimate 5,225,000
Extraction 2022 225,000
Available tons on Dec. 31,2022 5,000,000
CA of WA 65,430,000
Depletion rate 10.8
Depletion expense 2022 2,430,000

Acquisition Cost 25,200,000

Restoration Cost
Development cost
Exploration cost
Cost of WA 25,200,000
Residual Value 3,600,000
Estimated reserves 1,500,000 tons
Expected Extraction per month 25,000 tons
Equipment 14,400,000
Useful life 8
Residual Value 900,000

Cost of WA 25,200,000
Residual Value 3,600,000
Estimated reserves 1,500,000
Depletion rate 14.4
Extraction 2021 150,000
 Depletion expense 2021 2,160,000

Equipment 14,400,000
Residual Value 900,000
Useful life 8
Depreciation rate 9
Depreciation expense 2021 1,350,000
300,000

Acquisition Cost 54,000,000

Restoration Cost 6,480,000
Development cost 13,500,000
Exploration cost
Cost of WA 73,980,000
Residual Value 5,670,000
Estimated reserves 1,500,000
Extraction 2021 450,000
Sold tons 300,000
Depletion rate 45.54
Depletion expense 2021 20,493,000
Depletion for COGS 13,662,000

Exploration cost 9,000,000

Successful wells 20%
1,800,000
Unsuccessful wells 80%
Successful method 7,200,000
Full cost method 9,000,000

as cost of wasting

Volvo 9,750,000
Lexus 5,340,000 S
Ferrari 12,960,000
Audi 7,200,000
Bentley 2,880,000 S
Successful Method
Capitalizable 8,220,000
Expense 29,910,000

Acquisition Cost 1,800,000

Restoration Cost
Development cost
Exploration cost
Cost of WA 1,800,000
Estimated tons 160,000
Residual Value 360,000
Extracted tons 2021 20,000
Depletion rate 9
Depletion expense 2021 180,000

Estimated tons 160,000

Underestimated 25,000 135,000
Revised estimate 165,000
Extracted tons 2022 30,000
CA of WA 1,620,000
Residual Value 360,000
Depletion rate 7.64

Recoverable reserves 2,500,000 tons

Completed extraction 5 years

Acquisition Cost 16,200,000

Development/exploration cost 1,800,000
Restoration cost 2,700,000
PV of restoration 0.621
Discounted restoration cost 1,676,700
CA of WA 19,676,700
Depletion Rate 7.87

Exploration Cost 3,600,000

Appraised sulful deposits 12,000,000
Acquisition cost 45,000,000
Development cost 10,800,000
Restoration cost 5,400,000
CA of WA 61,200,000
Residual Value 1,530,000
Estimated extraction 500,000
Extracted for the year 90,000
Depletion rate 119.34
Depletion for the 1st year 10,740,600

Exploratory drilling 3,600,000

Roads and Infra 6,300,000
Development cost 6,120,000
Acquisition Cost 30,000,000
Exploration Cost
Development Cost 6,000,000
Restoration Cost 4,000,000 2,161,200
PV of Rest. Cost 0.5403

COST OF WA 38,161,200
Residual Value - tons of ore
Expected to Extract 2,000,000
Depletion rate 19.08
Extracted 2021 300,000
Depletion 2021 5,724,180

COST OF WA 38,161,200
Depletion 2021 5,724,180
CA of WA Dec. 31 2021 32,437,020
Add: Dev. Cost 2022 1,800,000
CA of WA Dec. 31 2021 34,237,020
Residual Value - Revised Est. of Extraction
Revised Est. of Extraction 2,400,000 extracted in 2022
Depletion rate 14.27 Revised Est. of Extraction
Extracted 2022 600,000
Depletion 2022 8,559,255 Depletion rate
Extracted 2022
Depletion 2022

CA of WA Dec. 31 2021
CA of WA Dec. 31 2021 34,237,020 Depletion 2022
Depletion 2022 8,559,255 CA of WA Dec. 31 2022
CA of WA Dec. 31 2022 25,677,765
 13,500,000
1,000,000
13.5
100,000
1,350,000

11,880,000
1,485,000
10,395,000 2023
550,000
18.9
1,890,000.0

11,880,000
8
1,485,000

Depletion
units

units
2,419,200
 3,000,000
600,000
2,400,000

11.41 11.41
600,000
6,847,404 6,846,000

34,237,020
6,846,000
27,391,020