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?