Christian Kyle Bagood

E 9-1 - Exploration, evaluation and development activities

1. D
2. Ex
3. Ev
4. D
5. Ex
6. D
7. Ev
8. D
9. Ex
10. Ev

E 9-2- Items included in cost to develop mineral resource assets

1. No
2. No
3. Yes
4. Yes
5. No
6. No
7. Yes
8. Yes
9. Yes
10. Yes
11. Yes
12. No
13. Yes
14. Yes
15. No

E 9-3 - Computation of depletion

1. Depletion for 2019

Depletion per ton = (purchase cost - Estimated restoration cost) / Estimated total tons
Depletion per ton = (P450,000 - P80,000) / 400,000 tons
Depletion per ton = 0.93

Depletion for 2019 = Depletion per tons * Tons mined in 2019

Depletion for 2019 = 0.93 * 80,000 = P74,400
Depletion for 2019 = P74,400
2. Depletion for 2020

Depletion per ton = (P450,000 - P80,000) / 400,000 tons

Depletion per ton = 0.93
Depletion 2020 = 0.93 * 100,000 tons
Depletion 2020 = 93,000

3. Depletion for 2021

Depletion per ton = 0.93

Depletion 2021 = 0.93 * 140,000
Depletion for 2021 = 130,200

4. Depletion included in cost of sales for the year ended Dec. 31, 2021

Depletion included in cost of sales = Depletion per ton * tons sold in 2021
Depletion included in cost of sales = 0.93 * 130,000
Depletion included in cost of sales = 120,900

5. The carrying amount of the mineral resource asset as of Dec. 31, 2021
Carrying amount = 450,000 - (Depletion expense for all years - estimated restoration cost + additional costs incurred
Carrying amount = P450,000 - 74,400 - 93,000 - 130,200) - 80,000 + 100,000
Carrying amount = 172,400
tional costs incurred