On January 1, 2016, Manika Company purchased land with valuable natural ore deposits for P10,000,000. The residual value of the land was P2,000,000. At the time of purchase, a geological survey estimated a recoverable output of 4,000,000 tons. Early in 2016, roads were constructed on the land to aid in the extraction and transportation of the mined ore at a cost of P1,600,000. In 2016, 500,000 tons were mined and sold. A new survey at the end of 2017 estimated 4,200,000 tons of ore available for mining. In 2017, 800,000 tons were mined and sold. (a) What amount should be recognized as depletion for 2016 and 2017?

At the beginning of 2024, Terra Lumber Company purchased a timber tract from Boise Cantor for $3,730,000. After the timber is cleared, the land will have a residual value of $760,000. Roads to enable logging operations were constructed and completed on March 30, 2024. The cost of the roads, which have no residual value and no alternative use after the tract is cleared, was $297,000. During 2024, Terra logged 660,000 of the estimated 6.6 million board feet of timber. Required: Calculate the 2024 depletion of the timber tract and depreciation of the logging roads, assuming the units-of-production method is used for both assets. Note: Do not round intermediate calculations. Enter values in whole dollars. Depletion of the timber tract Depreciation of the logging roads

During the reporting period ending 30 June 2014, Sara Limited erected an oil rig in Noosa River. The cost of the rig and associated technology amounted to $99 000 000. The oil rig commenced production on 1 July 2014. At the end of the rig’s useful life, which is expected to be five (5) years, Sara Limited is required by its resource consent to dismantle the oil rig, remove it, and return the site to its original condition. After consulting its own engineers and environmentalists, Sara Limited estimates that if such work was required to be done at the present time it would cost $14 999 995.   If we accept that the rate on 5-year government bonds reflects the relevant time value of money, and if the rate is 4 per cent annually, calculate the present value of the restoration provision which would be today.