Answer and explain

The following accounts appear in the statement of financial position of a wasting asset entity at year-end Resource Property Accumulated Depletion Retained Earnings P10,000,000 P2,000,000 P3,000,000 37. The maximum dividends that my be declared would be A. P1,000,000 B. P2,000,000 C. P3,000,000 D. P5,000,000 38. Dividend declaration for the account above would include A. Credit to Retained Earnings for P5,000,000 B. Debit to Capital Liquidated for P2,000,000 C. Debit to Dividends Payable for P5,000,000 D, Credit to Dividends Payable for P2,000,000 39. Nondistributable reserve usually include the following, except A. Share Premium Reserve B. Profit or Loss Reserve C. Asset Revaluation Reserve D. Appropriation Reserve 40. Items affecting directly retained earnings include the following, except: A. Net income or loss B. Prior Period Errors C. Dividends to shareholders E. Unappropriated retained earnings