1. The Zomboni Company is involved in the exploration of mineral resources. Its policy is to recognize exploration assets initially at cost.

During 2022, Zomboni incurs the following expenditures:

Exploratory drilling for minerals on site and related activities 200 million
Roads and infrastructure to access exploration site 350 million
Expenditures relating to the subsequent development of 340 million
resources
In accordance with PFRS6Exploration for and Evaluation of mineral resources at what amount should exploration assets be initially
recognized in the financial statements of Zomboni?
 A. 220 million b. 540 million c. 550 million d. 890 million

6.ABC Company provides the following balances at the end of 2022:

Wasting Asset, cost 80,000,000

Accumulated depletion 20,000,000
Retained earnings 10,000,000
Capital liquidated 15,000,000
Depletion based on 100,000 units extracted at P50 per unit 5,000,000
Inventory of resource deposit (20,000 units) 2,000,000

Compute for the maximum amount of dividend that ABC Company can declare on December 31, 2022

7. At year end, Zee Company has an equipment with the following cost and accumulated depreciation:

Equipment 9,000,000
Accumulated Depreciation 3,000,000

Due to obsolescence and physical damage, the equipment is found to be impaired.

At year end, the entity has determined the following information related to the equipment:
Fair value less of cost of disposal 4,500,000
Value in use or discounted net cash inflows 4,000,000
Undiscounted net cash inflows 5,500,000

What amount should be reported as impairment loss of the year?

a. 1,500,000 b. 2,000,000 c. 500,000 d. 0

8. On January 1, 2016, Reed company purchased a machine for P 8,000,000 and established an annual
depreciation charge of P 1,000,000 over an eight year life.
During 2019, after issuing the 2018 financial statements, the entity concluded that the machine suffered
permanent impairment and P 2,000,000 is a reasonable estimate of the amount expected to be recovered
through use of the machine for the period January 1, 2019 through December 31, 2023.

What is the impairment loss for 2018?

a. 3,000,000 b. 4,000,000 c. 2,000,000 d. 0