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In 2008, Philex Mining Corporation (Philex) purchased property with Natural Resources for P28M. The property had a residual value of P5M. However, the company is
In 2008, Philex Mining Corporation (Philex) purchased property with Natural Resources for P28M. The property had a residual value of P5M. However, the company is required to restore the property to its original condition for P2M. In 2008, Philex spent P1M for development cost and P3M for a building on the property. Philex does not anticipate that the building will have utility after the natural resources are removed. In 2009, an amount of P1M was spent for additional development on the mine. The tonnage mined and estimated remaining tons for years 2008 to 2010 are as follows: Year Tons Extracted Tons Remaining 2008 0 10,000,000 2009 3,000,000 7,000,000 2010 3,500,000 2,500,000 Compute for the depletion for 2008, 2009 and 2010
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