Show the solution:

(D) ABC Mining Corporation was created to extract mineral from a specific island. Upon completion of the four-year operation, it will be liquidated. It made the following transactions for the year: Jan. 1 January February Mar. 1 Mar. 31 SEC Registration of the Corporation P 20,000 Other organization costs 50,000 Initial exploration cost 20,000 Purchase price of the island (salvage value after extraction would be P 500,000) 4,000,000 Permits and license to mine (included in the permit is the obligation to restore the island. Restoration cost is estimated as P300,000. Appropriate effective rate is 5%.) Additional exploration costs Mining Equipment and Tools April to Other extraction costs [cash expense) December 1,400,000 _ Other operating costs 1,300,000 May to Sales (1,900 tons at P2,000 per ton, 100 tons December not sold) 3,800,000 The commercial viability and technical feasibility became demonstrable on April 2. The initial estimates of the mineral were as follows (in tons): The mining equipment and tools has an industry average useful life of five years. The estimated salvage value are as follows: E-_ _ 16. 17. 18. 19. 20. 21. 22. __ How much should the wasting asset be initially recognized at? How much is the depletion expense for the year? How much is the depreciation expense arising from the mining equipment for the year? How much is the amortization of the permit and license? How much is the ending inventory? How much is the income of the entity? How much is the maximum amount that can be declared as dividends as of the end of the year