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Question - In 2014, ABC Mining Co. purchased real estate containing copper for a total cost of P10,000,000. Immovable tangible equipment costs for drilling rig foundation totaled P5,000,000. Estimated recoverable reserves from the mine are 1,000,000 units. It is estimated that 100,000 units will be extracted each year. The drilling rig foundation has an estimated useful life of 15 years. Actual units extracted from 2014 through 2016 totaled 340,000 units. No units were extracted during 2017 due to an employee strike. Extraction resumed in 2018 and total units extracted that year was 80,000 units.
1. Compute the Depletion for 2017.
2. Compute the Depreciation for 2017.
3. Compute the Depletion for 2018.
4. Compute the Depreciation for 2018.
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