On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for an area of interest with removable ore estimated by geological surveys at 10,000,000 tons. Mina is required by the national government to restore the area of interest after the extraction of the estimated units of reserves, Mina Company estimates that it will take 10 years to fully extract the reserves and estimates its restoration cost to be P10,000,000.  The relevant discount rate is 10% (use 3 decimal places to round off the present value factor).   The Company also incurred P2,150,000 of development costs in preparing the property for the extraction of the ore. During 2020, 540,000 tons were mined.   How much is the depletion/amortization expense for the year ended December 31, 2020? Group of answer choices 7,082,100 6,966,000 7,173,900 7,290,000

On 1 April 2021, PHI plc acquired a new machine for a price of £25,000. On the same day, PHI paid £5,000 for a staff training session on how to operate the machine. For the subsequent measurement of the machine, PHI chose the revaluation model and the diminishing balance method with an annual rate of 30%. PHI expects to use the machine for 10 years and to dispose of it at the end of these 10 years (residual value of £0). On 31 December 2021, the machine has a fair value of £23,000; on 31 December 2022, the machine has a fair value of £12,000. PHI has a fiscal year ending 31 December.   REQUIRED: a) Explain what the subsequent measurement of the machine tells you about the subsequent measurement of other items of property, plant and equipment (PPE). b) Calculate the relevant amounts and prepare the journal entries for the initial recognition and subsequent measurement of the machine in fiscal years 2021 and 2022. Explain each of your steps.) c)On 31 December 2021, annual depreciation…

A firm is planning to purchase a new machine costing ₱2,600,000 with freight and installation costs amounting to 125,000. The old unit to be traded-in will be given a trade-in allowance of ₱240,000. Other assets that are to be retired as a result of the acquisition of the new machine can be salvaged and sold for ₱52,000. The loss on the retirement of these assets is ₱50,000 will reduce taxes by ₱20,000 which is based on a tax rate of 40%. If the new machine is not purchased, extensive repairs on the old machine will have to be made at an estimated cost of ₱350,000. This cost can be avoided by purchasing the new machine. Additional gross working capital of ₱250,000 will be needed to support operations planned with the new machine. The net cost of investment would be? ₱2,725,000 ₱2,313,000 ₱2,063,000 ₱2,485,000 ₱2,973,000 ₱2,413,000

Banco Company acquired a new machine on a delayed payment basis on August 1, 2018. A down payment of P100,000 was made, with four monthly instalments of P250,000 to commence on September 1, 2018. The machine's cash equivalent price was P 950 000. The entity spent and paid P 30 000 in installation fees. What is the sum to be capitalised as the machine's cost?