During the month of August, a mining company has a gross income of P4,200,000 from the production of nickel. All expenses, excluding depletion expenses for this month, amount to P2,800,000. If the fixed depletion rate for nickel is 22%, what is the depletion allowance for this month?
1.During the month of August, a mining company has a gross income of P4,200,000 from the production of nickel. All expenses, excluding depletion expenses for this month, amount to P2,800,000. If the fixed depletion rate for nickel is 22%, what is the depletion allowance for this month?
2.To develop on oil well containing 5,000,000 barrels of oil required an initial investment of P40,000,000. In a certain year, 500,000 barrels of oil were produced from this well. Determine the depletion charge during the year.
3. a certain machine costs p40,000 and has a life of 4 years and salvage value of p5000. the production output of this machine in units per year for the first year; 1,800 units,2nd year 2,200 units; 3rd year; 3,000 units, 4th year 4,000 units. the units produced are of uniform quality. what is the annual depreciation charge?
Step by step
Solved in 3 steps with 1 images
