6. On January 1, 2013, Norelyn Company purchased a mineral mine for P26,400,000 with removable or estimated at 1,200,000 tons. After it has extracted all the ore, the entity will be required by law to restore the land to its original condition at an estimated cost of P2,200,000. The present value of the estimated restoration sost is P1,800,000. The property can be sold afterwards for P3,000,000. During 2013, the entity incurred P3,600,000 of exploration and development costs preparing the mine for production. The entity removed 80,000 tons of ore and sold 60,000 tons of ore in 2013. What amount of depletion should be Included In cost of sales for 2013? a. 1,920,000 b. 1,440,000 C. 1,500,000 d. 1,590,000 7. O July 1, 2013, Marjorie Company purchased the rights to a mine for P13,200,000, of which P1,200,000 was allocable to the land. Estimated reserves were 1,500,000 tons. The entity expects to extract and sell 25,000 tons per month. The entity purchased mining equipment on July 1, 2013 for P9,500,000. The mining equipment had a useful life of 8 years. However, after all the resource is removed, the equipment will be of no use and will be sold for P500,000. What amount should be recorded as depreciation of the mining equipment for 2013? a. 1,800,000 b. 1,125,000 C. 900,000 d. 562.500 B. In 213, Lara Company purchased property with natural resources for P28,000,000. The property had a residual value of P5,000,000. However, the entity is required to restore the property to its original condition at a discounted amount of P2,000,000. In 2013, the entity spent P1,000,000 in development cost and P3,000,000 in building. In 2014, an amount of P4,000,000 was spent for additional development on the mine. Production began in 2014 and the tons extracted totaled 3,000,000 in 2014 and 2,500,000 in 2015. The tons remaining totaled 7,000,000 and 3,500,000, respectively on December 31, 2014 and December 31, 2015. What amount of depletion should recognized in 2015? a. 10,500,000 b. 12,250,000 C. 9,000,000 d. 8,750,000 9. Carmella Company provided the following balances on December 31, 2013