1Archer Mining Limited (Archer) acquired a mining property in Western Australia calledCalypso by paying $3 720 000 in cash. If a viable mineral resource day eposit is found, statelegislation will require the removal of any mine infrastructure and the rehabilitation of themine site at the end of commercial production. Archer treats the Calypso property as anarea of interest.

During 2017, Archer undertook the following pre-production activities

In early 2018 the company judged that the Calypso area of interest would yield economicallyrecoverable reservestotaling12 milliontonnesof ore. Operations are expected to last for18 years at the Calypso area of interest once production commences. It is estimated thatthe land will have a residual value of $20000 after the ore deposit is exhausted. Archer

incurred the following costs during 2018:

In addition to the development costs, the company undertook the following capitalinvestment in 2018:

The buildings, railroad and associated equipment cannot be economically removed fromthe mine location, but the other mine equipment can be removed and has alternativeuses. On 31 December 2018, it is estimated that development and construction activitieshave resulted in $1 010000 of future rest oration costs. A discount rate of 6% is identifiedby the company as best reflecting the risk and commercial conditions associated with theCalypso area of interest.

Operations commenced on 1 January 2019 and aresummarisedbelow.

The annual reporting date of Archer is 31 December

Required to extract from the statement of comprehensive income showing net profit aftertax for Archer Mining Limited for the period ending 31 December 2019 in accordance withAASB 6 and other applicable Australian accounting standards. Tax-effect accounting is notrequired. Show all calculations. (L03, L04, L05, L06, L07)