Question
On 1 January 2014: A Company bought a Mine for $2,000,000. Of this amount, $1,000,000 was attributable to the land value. The Company spent
On 1 January 2014:
A Company bought a Mine for $2,000,000. Of this amount, $1,000,000 was attributable to the land value. \
The Company spent $300,000 on development costs.
The present value of the restoration obligation to restore the land to its original state is $200,000.
The Company estimates that the Mine has 100,000 Units of minerals available for mining.
During 2014: 50,000 units were extracted and, of these,40,000 units were sold
The Value of Inventory of the Minerals at the end of 2014 is:
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Accountants Guide To Fraud Detection And Control
Authors: Howard R. Davia, Patrick C. Coggins, John C. Wideman, Joseph T. Kastantin
2nd Edition
0471353787, 9780471353782
