During the month of May a mining company has a gross income of P5M from the production of gold. All expenses excluding depletion for this month was P1.8M. If fixed depletion rate of gold is 15% what is the depletion allowance for this month?
2) A contractor imported a bulldozer paying P500k to the manufacturer, freight & insurance charges amounted to P18k, customs & brokers fee P10k, permits & other exp P25k. If the contractor estimates the life of the bulldozer to be 20 years with salvage value of P50k, determine depreciation for year 9 and book value at the end of year 9 using Straight line and Matheson Method.
4) A drilling machine may be used to dig ditches. The contractor purchased it for P200k & estimates that it will be able to dig 750k meters during its life and he expects to receive 10% as scrap value when he sells it. What if during a certain year he used the machine to dig 150k meters of trench, determine depreciation cost for that year.
3) During the month of May a mining company has a gross income of P5M from the production of gold. All expenses excluding depletion for this month was P1.8M. If fixed depletion rate of gold is 15% what is the depletion allowance for this month?
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