On July 1, Lethargic Company, a calendar year entity, purchased the rights to a mine. The total purchase price was P14,000,000, of which P2,000,000 was allocable to the land. Estimated reserves were 1,500,000 tons. The entity expects to extract and sell 25,000 tons per month. The entity purchased new equipment on July 1. The equipment was purchased for P8,000,000 and had a useful life of 4 years with no residual value. 7. Assuming that the 25,000 tons per month expectation was met, what is the depletion for the current year? a. P1,200,000 b. P2,400,000 C. P1,950,000 d. P1,400,000 8. What is the depreciation of the equipment for the current year? a. P 1,600,000 b. P 2,000,000 c. P 1,000,000 d. P 1,200,000