Problem 4 On February 5, 2020, Diamond Company purchased a new machine on a deferred payment basis. A down payment of P100,000 and four P250,000 yearly installments will be made every February 1, starting next February 1, 2021. The imputed discount rate is 6.833%. How much is the initial cost of the asset? Problem 5 The following costs were incurred by ABCDEFGH, Inc., during 2020: July 1 July 2 P120.000 1.890,000 July 3 July 20 250,000 110,400 Organization fees Land site and old building Option payments Broker's fees on property acquired Cost of remodeling the building Salaries of executives Real property taxes July 30 60,000 August 30 360,000 240.000 December 21 Additional information: The building acquired had a fair value of P450.000 while the land was currently appraised at P1,800,000 P50,000 of the option money paid were for properties not acquired. The executives had no participation on the remodeling of the building The property taxes were for the 2020 calendar year. How much is the cost of land? P1,856,320 O P1,512.000 O P2,288,000 P1.992,320 Problem 6 On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for an area of interest with removable ore estimated by geological surveys at 10,000,000 tons. Mina is required by the national government to restore the area of interest after the extraction of the estimated units of reserves, Mina Company estimates that it will take 10 years to fully extract the reserves and estimates its restoration cost to be P10,000,000. The relevant discount rate is 10% (use 3 decimal places to round off the present value factor). The company expects to recover P2,000,000 on the disposal of the asset at the end of its useful life. The Company also incurred P2,150,000 of development costs in preparing the property for the extraction of the ore. During 2020, 540,000 tons were mined. How much is the carrying value of the wasting asset as of December 31, 2020