1. Company owned a machine that was bought on January 1, 2013 for P8,000,000. The machine was estimated to have a useful life of five years and a residual value of P500,000. The entity used the sum of years' digits method of depreciation. On January 1, 2016, the entity determined that the total useful life of the machine should have been four years and the residual value is P600,000. What amount should be recorded as depreciation expense on the machine for 2016?
2. Purchased on October 1, 2018 an equipment for P800,000. The equipment had an estimated useful life of 8 years. The estimated salvage value was estimated at P50,000 at the end of its useful life. The equipment is being depreciated using the double-declining balance method. What is the amount of depreciation to be charged against 2019 income?
3.Corporation purchased land for P6,000,000. The company expected to extract 1 million tons of mine from this land over the next 20 years at which time, residual value shall be zero. During the first 2 years of the mine's operations, 30,000 tons were mined each year and sold for 80 per ton. The estimate of the total remaining lifetime capacity of the mine was raised to 1,200,000 tons at the start of the third year and the residual value was estimated to be P480,000. During the third year, 50,000 tons were mined and sold for P85 per ton. How much would be the depletion for the third year?
