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Quiz - Chapter 17 - Depletion of Mineral Resources
Quiz - Chapter 17 - Depletion of Mineral Resources
Chapter 17
Depletion of Mineral Resources
NAME: Date:
Professor: Section: Score:
QUIZ:
2. Exploration and evaluation assets are exploration and evaluation expenditures recognized as
a. assets in accordance with the entity’s accounting policy.
b. expenses in accordance with applicable PFRSs.
c. assets in accordance with (a) above, subject to the limitations provided under PAS 8
Accounting Policies, Changes in Accounting Estimates and Errors.
d. any of these
4. Assuming that of the 300,000 ounces of gold extracted in 20x2, 280,000 ounces were sold and
20,000 ounces remain in inventory. How much depletion is recognized in the 20x2 (a) statement
of financial position and (b) statement of profit or loss and other comprehensive income,
respectively?
Statement of financial position Statement of profit or loss
a. 1,680,000 120,000
b. 116,000 1,624,000
c. 11,000 154,000
d. 120,000 1,680,000
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Actual units quarried in 20x1 through 20x4 totaled 30,000,000 units. On January 1, 20x5, BUCOLIC
Co. estimated that the remaining recoverable reserves are only 25,000,000 units and after the
reserves are exhausted, the land will be sold for ₱3,200,000. Costs of disposal are estimated at
₱1,200,000. Actual units quarried in 20x5 totaled 6,000,000 units.
6. What is the carrying amount of the wasting asset on December 31, 20x5?
a. 43,852,000 b. 44,272,000 c. 42,720,00 d. 43,952,000
“A wise man will hear and increase learning, and a man of understanding will attain wise counsel.” (Proverbs 1:5)
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