During the current year, Mine View Company incurred P2,000,000 in exploration cost for each of the 15 oil wells drilled in the current year In Surigao. Of the 15 wells drilled , 8 were dry holes. The entity used the successful effort method of accounting. None of the oil found is depleted in the current year. What oil exploration expense should be reported in the income statement for the current year .
During the current year, Mine View Company incurred P2,000,000 in exploration cost for each of the 15 oil wells drilled in the current year In Surigao. Of the 15 wells drilled , 8 were dry holes. The entity used the successful effort method of accounting. None of the oil found is depleted in the current year. What oil exploration expense should be reported in the income statement for the current year .
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During the current year, Mine View Company incurred P2,000,000 in exploration cost for each of the 15 oil wells drilled in the current year In Surigao. Of the 15 wells drilled , 8 were dry holes. The entity used the successful effort method of accounting. None of the oil found is depleted in the current year. What oil exploration expense should be reported in the income statement for the current year .
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