At the beginning of the current year, Vanity Company purchased a mineral mine for P26,400,000 with removable ore 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 the original condition at an estimated cost of P2,400,000. The present value of the estimated restoration cost is P1,800,000.

The entity believed that it will be able to sell the property afterwards for P3,000,000. During the current year, the entity incurred P3,600,000 of development costs preparing the mine for production and removed 80,000 tons and sold 60,000 tons of ore.

Prepare journal entries for the current year based on the transactions.