Problem 28-3 (IAA) (AA).88 On January 1, 2020 Universal Company paid P5,400,000 for property containing natural resource of 2,000,000 tons of ore. The estimated discounted amount of restoring the land...

Compute the carrying amount of wasting asset on december 31,2022

Extracted text: Problem 28-3 (IAA) (AA).88 On January 1, 2020 Universal Company paid P5,400,000 for property containing natural resource of 2,000,000 tons of ore. The estimated discounted amount of restoring the land after the resource is exhausted is P450,000 and the land will have a value of P650,000 after it is restored for suitable use. Tunnels, bunk houses and other fixed installations are constructed in the amount of P8,000,000. Such expenditures are to be charged to mine improvements. Operations began on January 1, 2021 and resources removed totaled 600,000 tons. During 2022, a discovery was made indicating that available resources after 2022 will total 1,875,000 tons. At the beginning of 2022, additional bunk houses were. constructed in the amount of P770,000. In 2022, only 400,000. tons were mined because of a strike.