Question 60 2 pts The Bad Buddy Mining Company purchased a tract of land containing mineral resource for P54,000,000. The purchase contract contained a provision that Bad Buddy is required to restore the land suitable for factory use after it has extracted the mineral resource. Geological surveys have indicated that 2,400,000 tons of ore could be extracted. The property has an estimated salvage value of P6,000,000 after the ore has been extracted and the land is restored. The estimated cost of restoration and geological survey is P7,200,000 which is the present value at date of acquisition. Assuming that Bad Buddy does not maintain inventories of extracted ores, how much should be charged to depletion expense per ton of extracted mineral ore? A. P20.00 B. P22.50 C. P23.00 D. P25.50 D Question 61 2 pts Apple, Inc., a manufacturing of Iphone acquired a patent in June 28, 2022 for P340,000. Management expects the patent to be useful to the Company for its remaining life of 10 years. Legal life of the patent is 20 years. On January 3, 2023, the company spent P51,000 to successfully defend the patent against a Samsung. During 2024, management determines that the estimated remaining life of the patent should be reduced to only five years, including the current year. This was made after a very careful consideration of the situation of the company is in, more so with respect to technology's innovations and competitors. The company policy is to amortize the cost of intangible assets using the straight-line method to nearest full month. How much is the patent amortization expense for 2022? A. P34,000 B. P20,000 C. P17,000 D. P10,000 Question 62 2 pts Apple, Inc., a manufacturing of Iphone acquired a patent in June 28, 2022 for P340,000. Management expects the patent to be useful to the Company for its remaining life of 10 years. Legal life of the patent is 20 years. On January 3, 2023, the company spent P51,000 to successfully defend the patent against a Samsung. During 2024, management determines that the estimated remaining life of the patent should be reduced to only five years, including the current year. This was made after a very careful consideration of the situation of the company is in, more so with respect to technology's innovations and competitors. The company policy is to amortize the cost of intangible assets using the straight-line method to nearest full month. What is the patent carrying value at January 1, 2024? A. P310,000 B. P304,000 C. P289,000 D. P283,000