Question
During 2020, Dual Company incurred P 4,000,000 in exploration cost for each of 15 oil wells drilled in 2020. Of the 15 wells drilled, 10
During 2020, Dual Company incurred P 4,000,000 in exploration cost for each of 15 oil wells drilled in 2020.
Of the 15 wells drilled, 10 were dry holes. The entity used the successful effort method of accounting. The entity depleted 30% of the oil discovered in 2020.
What amount of exploration cost should be reported in the December 31, 2020 statement of financial position?During 2020, Dual Company incurred P 4,000,000 in exploration cost for each of 15 oil wells drilled in 2020.
Of the 15 wells drilled, 10 were dry holes. The entity used the successful effort method of accounting. The entity depleted 30% of the oil discovered in 2020.
What amount of exploration cost should be reported in the December 31, 2020 statement of financial position?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
978-0470423684
