21-9 Income Tax Law and Accounting EXERCISES P50,000 70,000 21-1. Depreciation, if computed on cost Depreciation, if computed on appraised value Deduction for depreciation ? P20,000,000 10,000,000 tons 21-2. The property is mineral property Cost of the mineral property Estimated mineral ore deposit Mineral deposit extracted and sold during the year Deduction for depletion? 50,000 tons P5,000,000 50 years 21-3. Cost to the lessee of leasehold improvements Life of the improvements Annual deduction for the lessee if Remaining term of the lease in 40 years? Remaining term of the lease is 60 years? P 900,000 200 21-4. The following were expenditures for repairs: On an asset, that prolonged the life of the asset by two years On an asset, to replace bolts and nuts that always got loose Deductible repairs expense? 21-5. The taxpayer had actual entertainment expen- ses of P60,000 in a taxable year. Deduction for entertainment expenses if: A merchandiser or manufacturer? A service provider