Show the computation. Thank you Icon Company provided the following balances at the end ofthe current year:Wasting asset, at costAccumulated depletion20,000,0002,500,00050,000,000Share capitalCapital liquidated1,800,000Retained earnings1,500,0001,000,000Depletion based on 50,000 units at P20 per unitInventory of resource deposit (5,000 units)400,000Required:a. Compute the maximum dividend that can be declared.b. Prepare journal entry to record the declaration ofP2,000,000 dividend.

Dividends are profit distributions paid by a corporation to its shareholders. The dividend is paid…

Icon Company provided the following balances at the end of the current year: Wasting asset, at cost Accumulated depletion 20,000,000 2,500,000 50,000,000 Share capital Capital liquidated Retained earnings 1,800,000 1,500,000 1,000,000 Depletion based on 50,000 units at P20 per unit Inventory of resource deposit (5,000 units) 400,000 Required: a. Compute the maximum dividend that can be declared. b. Prepare journal entry to record the declaration of P2,000,000 dividend.