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Problem 5: Depletion On July 1. 20X6. the Apple Company purchased a coal mine for P2 million The estimated capacity of the mine was 700,000 tons. During 20X6, company mines 10.000 tons of coal per month and sells 9.000 tons per month. The selling price is P30 per ton and production costs (excluding depletion and depreciation) are P8 per ton. At the end of the mine's life, it is expected that it will cost P200.000 to restore the land, after which it can be sold for P100,000. The company also purchased some temporary housing for the miners at a cost of P150,000. The housing has an expected life of 10 years but is expected to be sold for P10,000 at the end of the mine's life. The company uses the FIFO cost flow assumption. Required: 1. Compute the company's expenses included on the 20X6 income statement. 2. Compute the cost of the company's inventory at December 31, 20X6. 3. In January 20X7, a new estimate indicated that the capacity of the mine was only 500,000 tons at that time. Compute the company's expenses included on the 20X7 income statement if the company mines and sells 10,000 tons per month