Module 9 (Wasting Assets)

Question no. 1
Exploratory Drilling for minerals on site and related services

Expenditures incurred by an entity in connection with the exploration for and evaluation of mineral resources
before the technical feasibility and commercial viability of extracting a mineral resource are demonstrable

Question no. 2
Trenching and sampling expenditure

Drilling rigs used for exploration,

depreciation expense
Total cost intangible Exploration and evaluation assets

Question no. 3
Acquisition Cost 18,000,000 Depletion
Exploration Cost 15,000,000 (35.5M - 5.2M) / 5M x 750K
Restoration Cost 2,500,000
Cost of Wasting Assets 35,500,000

Accumulated Depletion 4,545,000

Cost of Sales (4,545K x 550/750) 3,333,000
Ending Inventory (4,545K x 200/750) 1,212,000

Question no. 4
(4M x 5 successful oild drills) x 70% 14,000,000

Question no. 5
Acquisition Cost 800,000 Depletion
Restoration Cost (4.2M x .34) PV
factor of 1 = .34046104312 1,430,000 (2,230K / 1,000 x 100)
Cost of Wasting Asset 2,230,000

Question no. 6
Acquisition Cost 28,000,000 Cost
Accum. Depletion (32M
Restoration Cost 2,000,000 - 5M / 10M x 3M)
Development Cost 2,000,000 Carrying Amount 2018
Cost of Wasting Asset 32,000,000

Depletion for 2019 12,040,000

(23.9M - 5M / 5.5M x 3.5M)
Question no. 7
Depreciation Expense 2019
Mining Equipment (12.4M / 4) 3,100,000
Fixed Installation (9.6M / 1.2M x 120K) 960,000
4,060,000

Question no. 8
Unappropriated RE 10,000,000
Accumulated Depletion 20,000,000
Depletion, end - 1,000,000
Capital Liquidated - 15,000,000
Maximum Dividend 14,000,000
 200,000,000

on of mineral resources
e are demonstrable

100,000,000

30,000,000
130,000,000

4,545,000

223,000

32,000,000

8,100,000
23,900,000