In 2017, a company acquired a silver mine for P50,000. In 2018, the company constructed a road to the silver mine costing P5,000,000. Improvements and other development costs made in 2018 cost P750,000. It is estimated that the mine can be sold for P600,000 after mining activities. During 2019, buildings were constructed near the mine to house workers at a total cost of P2,000,000. Residual value of these building amounted to P200,000. In 2020, it was estimated that 4,000,000 tons of silver ore could be removed from the mine for refining. During 2020, the first year of operations, 500,000 tons were removed from the mine, 200,000 of which remained in inventory at the end of the year. In 2021, workers mined 1,000,000 tons of silver. During that same year, geologists discovered that the mine contained 3,000,000 tons of silver ore in addition to the original 4,000,000 tons. Development costs of P1,300,000 were made in early 2021 to facilitate removal of the additional silver. In addition, an additional building was constructed for P375,000, with insignificant residual value. 700,000 tons of silver ore were sold in 2021. FIFO method is used by the entity to measure inventory. Determine: (1) Depletion expense reported in 2020 statement of profit or loss (2) Depletion expense capitalized in ending inventory as of December 31, 2021 (3) Depreciation expense reported in 2021 statement of profit or loss (4) Depreciation expense capitalized in ending inventory as of December 31, 2020

On March 1, 2024, a company entered into an agreement with the state to obtain the rights to operate a mineral mine for $6 million. The mine is expected to produce 155,000 tons of mineral. As part of the agreement, the company agrees to restore the land to its original condition after mining operations are completed in approximately five years. Management has provided the following possible outflows for the restoration costs that will occur five years from now: (PV of $1. PVA of $1) Cash Outflow $ 520,000 675,000 830,000 Probability 20% 30% 50% The company's credit-adjusted risk-free interest rate is 9%. During 2024, the company extracted 27,900 tons of ore from the mine. How much accretion expense will the company record in its income statement for the 2024 calendar year? Multiple Choice

Mark Company quarries limestone, crushes it and sells it to be used in road building. Mark paid P10,000,000 for a certain quarry. The property can be sold for P3,000,000 after production ceases. Estimated total reserves 10,000,000 Tons quarried through December 31, 2020 Tons quarried in 2021 4,000,000 1,500,000 An engineering study performed in 2021 indicated that on January 1, 2021, 7,500,000 tons of limestone were available. What is the depletion for 2021?

Cimi Manufacturing had the following transactions related to the purchase of long-term assets. During 2025, purchased land for $380,000 with plans to build a new facility.  The company pays $23,500 to demolish a building that was on the land and an additional $17,000 to grade the land in preparation for the new building.  Construction cost of the new building was $$2,100,000.  The parking lot and related lighting cost $41,000.  Cimi's employee wages during this time of construction were $214,000.  On Nov 5, 2025, Cimi purchased machinery to be install in the new facility.  the machine had a price of $28,000 with term 2/10, n/30, and FOB shipping point.  Cimi always pays within the discount period.  Transporation cost of $680 wer paid.  Additionally, the following costs related to installation of the machine were incurred:  installation cost $7,600 of which $5,000 of this was parts, testing costs of $900.  During installation, damage to a neighboring company's warehouse occured, costing…