In 20x2, Sundance Company.r acquired a silver mine in Eastern Mindanao. Because the mine is located deep in the Mindanao frontier, Sundance was able to acquire the mine for a low price of P50,000. In 20x3, Sundance constructed a road to the silver mine costing P5 million. Improvements and other development costs made in 20x3 cost P750,000. Because of the improvements to the mine and to the surrounding land, it is estimated that the mine can be sold for P600000 when mining activities are complete. During 20x4, five buildings were constructed near the mine site to house the mine workers and their families. The total cost of the ve buildings was P2 million. Estimated residual value is P200,000. In 20x3, geologists estimated that 4 million tons of silver ore could be removed from the mine for rening. During 20X5, the rst year of operations, only 500,000 tons of silver ore were removed from the mine. However, in 203%, workers mined 1 million tons of silver. During the same year, geologists discovered that the mine contained 3 million tons of silver ore in addition to the original 4 million tons. Development costs of P13 million were made to the mine early in 20305 to facilitate the removal of additional silver. Early in 20X6, an additional building was constructed at a cost of P3?5,000 to house the additional workers needed to excavate the added silver. The building is not expected to have any residual value