In January 1, 2020, KJ Company purchased a mineral mine for P43,200,000 with removal ore estimated by geological survey at 2,592,000 tons. The property has an estimated value of 4,320,000 after the ore has been extracted. The entity incurred P12,960,000 of development costs preparing the property for the extraction of ore. During the current year, 324,000 tons were removed and 288,000 tons were sold. What amount of depletion should be included in cost of goods sold for the current year? *

1 point

4,860,000

5,760,000

6,480,000

4,320,000

2.On January 1, 2018, KJ Company paid P5,300,000 for property containing natural resource of 2,000,000 tons of ore. The present value of the estimated cost of restoring the land after the resource is extracted is P550,000 and the land will have a value of P650,000 after it is restored for suitable use. Tunnels, bunk houses, and other fixed installations are constructed at a cost of P8,000,000 and such expenditures are charged to mine improvements. Operations began on January 1, 2019 and resources removed totaled 600,000 tons. During 2020, a discovery was made indicating that available resource after 2020 will total 1,875,000 tons. At the beginning of 2020, additional bunk houses were constructed in the amount of P770,000. In 2020, only 400,000 tons were mined because of a strike. What is the depreciation rate per unit for 2020? *

2.80

2.90

1.80

2.60

3.On January 1, 2018, KJ Company paid P5,300,000 for property containing natural resource of 2,000,000 tons of ore. The present value of the estimated cost of restoring the land after the resource is extracted is P550,000 and the land will have a value of P650,000 after it is restored for suitable use. Tunnels, bunk houses, and other fixed installations are constructed at a cost of P8,000,000 and such expenditures are charged to mine improvements. Operations began on January 1, 2019 and resources removed totaled 600,000 tons. During 2020, a discovery was made indicating that available resource after 2020 will total 1,875,000 tons. At the beginning of 2020, additional bunk houses were constructed in the amount of P770,000. In 2020, only 400,000 tons were mined because of a strike. What amount should be the new depletion rate in 2020? *

1.64

1.94

1.20

1.60

4.On October 10, 2019, KJ Company purchased machinery for P2,000,000. Salvage value was estimated to be P100,000. The Machinery will be depreciated over eight years using the sum-of-years-digits method. If depreciation is computed on the basis of the nearest full month, how much should KJ record depreciation expenses for 2020 on this machinery? *

P388,888.89

P369,444.44

P444,444.44

P409,027.78