Prepare pertinent entries

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Problem - In 2020, Explorer Company paid P3,500,000 for land having an ore body estimated to contain 800,000 tons of ore. The land will have a value of P300,000 after exhaustion of the mine.

Building was set up at a cost of P2,400, 000 and heavy equipment was purchased on January 2, 2021 for P900,000. The heavy equipment is capable of exhausting the mine in 10 years and will have a salvage value of P140,000 at the end of its useful life. The life of the fixed assets is as follows:

Building 20 years

Equipment 8

In 2022, 50,000 units have been extracted.

In 2023, there was a strike, prompting the company to shutdown temporarily.

Required - Prepare pertinent entries from 2020 to 2023. Show all supporting computations in good form.

Reference no: EM132955961

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