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In 2018, Karen Company acquired a land containing ore for a total cost of Php 4,000,000. Exploration cost amounted to Php 6,000,000 while intangible development

In 2018, Karen Company acquired a land containing ore for a total cost of Php 4,000,000. Exploration cost amounted to Php 6,000,000 while intangible development cost amounted to Php 5,000,000. Movable tangible equipment costs for heavy equipment totaled Php 2,000,000 while immovable tangible equipment costs amounted to Php 1,000,000. Appropriate offices estimate that the total units estimated to be extracted is 4,000,000. It is estimated that 500,000 units will be extracted each year during the useful life of wasting assets. The movable equipment has a useful life of 20 years while the immovable equipment has an estimated useful life of 10 years. Actual units extracted during 2018 are 500,000 units.

Required: Based on the above facts, answer the following:

  1. How much is the depletion in 2018?
  2. How much is the 2018 depreciation of the movable equipment?
  3. How much is the 2018 depreciation of the immovable equipment?

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