Ametrine Mining began operations on January 4, 2021. Prior to engaging in exploratory and development activities, it purchased a tract of land for P15 million. It is estimated that this tract will yield 480,000 tons of ore with sufficient mineral content to make mining and processing profitable. It is estimated that 15,000 tons of ore will be unearthed in the first and last year and 30,000 tons every year in between. The land will have a residual value of P750,000. The company built necessary structures and sheds on the land at a cost of P3,600,000. It was completed in 2021 and it is estimated that these structures can serve 20 years but because they must be dismantled if they are moved, they have no scrap value. elsewhere. The company does not intend to use the structures

For the year 2021, how much should Ametrine Mining report as depreciation expense relating to the said structures and shed?

a. P112,500

b. P180,000

c. P211,760

d. P225,000