Luck-of-the-Irish Mining Company NL commenced operations on 1 July 2015, exploring for silver in outback Australia. The company has three areas of interest, Blarney, Gnome and Leprechaun. During the next three years, the company spends the following amounts:

	Blarney	Gnome	Leprechaun
Year ended 30 June 2016
Exploration	$400,000	$1,200,000	$500,000
Year ended 30 June 2017
Exploration	$200,000	$800,000	$400,000
Evaluation		$3,200,000
Year ended 30 June 2018
Exploration	$200,000	zero	$300,000
Development (Mining plant & equipment)		$4,800,000

During the year ended 30 June 2017, silver is discovered in Gnome and the company estimates that there are 3,000,000 ounces of silver to be extracted from Gnome. The Gnome site is developed in the 2018 year by the expenditure of $4,800,000 in mining plant and equipment, and production of silver commences in January 2018 at Gnome.

The company abandons the Blarney area on 30 June 2018 and recognizes an impairment loss of $800,000 on Blarney on that day.

The Leprechaun area has not yielded any economically viable silver deposits so far, but active exploration continues to take place and the area has not yet been abandoned.

The company complies with AASB 6 and carries forward as an asset as much exploration and evaluation expenditure as possible under the rules in AASB 6.

What is the carrying amount of the Exploration and Evaluation asset (all three areas combined) at 30 June 2018?

Select one:

a. $6,400,000

b. $10,000,000

c. $6,700,000

d. $1,200,000

e. $7,200,000