Question 13 (1 point) Which of the following statements regarding mineral resources is true? a) They are regenerative or non-regenerative materials in the earth's crust. Ob) They are materials that come from the earth's atmosphere or earth's crust. C) They are non-regenerative materials in the earth's crust. d) They are non-regenerative materials in the earth's atmosphere and in the earth's crust. Question 14 (1 point) King Mine Corp., a publicly accountable entity, is determining the technical feasibility of extraction of mineral resources. How would the company account for the costs incurred? O a) Work is preliminary and experimental, so costs must be expensed. b) Costs can be capitalized as exploration and evaluation costs, or expensed. Oc) Costs must be capitalized as property, plant, and equipment. Od) Costs must be capitalized as inventory. inting date. prospecting costs Sheldon Exploration Corp. (SEC) is in the exploration and evaluation phases of mining for zinc in Manitoba. The company incurred the following costs in 2020: $175,000 13,000 Mine closure costs 108,000 Trenching and sampling costs 46,000 Costs to transport zinc from the mine for processing Exploratory drilling costs 60,000 Extraction costs 550,000 SEC reports under IFRS. What are SEC's exploration and evaluation costs for the zinc mine in 2020? 16000 a) $952,000 b) $343,000 esplorably drilly right to Explar geological study 60,000 trendyisindsamlowy 08 00 6 bro c) $108,000 d) $168,000 Question 16 (1 point) Zoomer Inc. purchased a parcel of land with the intention of mining for phosphate. How should the land be recorded in Zoomer's financial statements while the company is determining the technical feasibility of mining the land? Assume that Zoomer reports under IFRS. Qa a) As property, plant, and equipment, capitalized under IAS 16. b) As exploration and evaluation costs, capitalized under IFRS 6. c) As prospecting costs, expensed as incurred. Od) As inventory, capitalized under IAS 2. For er produce Question 17 (1 point) Scully Mining Company (SMC) is mining for natural gas in northern British Columbia has incurred the following costs: $55,000 Prospecting costs Miscellaneous exploration and evaluation costs 120,000 Land purchase costs 570,000 Equipment purchased for extraction 135,000 Labour related to development and extraction 280,000 Overhead costs allowed to be allocated to the extraction process 190,000 Total $1,350,000 SMC is a public company that reports using the IFRS framework. Which of the following is true regarding the treatment of costs? a) Exploration and evaluation costs of $120,000 must be expensed. 000 Ob) SMC could capitalize $470,000 as inventory. Equipment purchased for extraction of $135,000 is capitalized as an exploration C) and evaluation asset. The prospecting costs of $55,000 are capitalized as an exploration and d) evaluation asset. Question 18 (1 point) For entities that report using IFRS, how are exploration and evaluation assets subsequently measured? a) Using the cost or revaluation model. b) Using the cost model or fair value model. c) Using the cost model. d) Using the cost model or depreciation model. uestion 19 (1 point) For entities that report using IFRS, which of the following is an example of agricultural produce? a) Butter produced from pasteurized cow's milk. b) Peach trees grown for the peaches. c) Yarn produced from sheep's wool. d) Felled trees. Question 20 (1 point) For entities that report using IFRS, what is an example of bearer plants? O a) Broccoli plants that are grown and harvested for six months. b) Strawberry plants that are grown and harvested for three years. Grapes that have been harvested and will be sold to customers without processing. Od) Flowers that will be cut to be sold to make bouquets. d) $118,000 Question 24 (1 point) For entities that report under IFRS, which of the following statements regarding the recognition of a government grant related to agriculture without conditions is true? The government grant is recognized in income when it becomes receivable. b) The government grant is recognized as a deferred credit and amortized to income over the life of the bearer plant or animal. c) The government grant is recognized against the operating costs related to the biological assets. d) The government grant is netted against any fair value increases in the biological asset, which is recognized in other comprehensive income. Question 25 (1 point) Saved Which of the following statements regarding the accounting treatment of agriculture is true? a) Each biological asset must be measured individually under IFRS. b) Once agricultural produce is harvested and is initially measured, it becomes property, plant, and equipment accounted for under IAS 16. Under ASPE, a new standard specific to agriculture is effective for fiscal periods beginning on or after January 1, 2022. When measuring biological assets or agricultural produce under IFRS, fair value d) is considered the fair value when the asset is ready to be sold, not in its current condition. Question 21 (1 point) Laffy Farms Corp. (Laffy), a publicly accountable entity, is growing half an acre of cannabis in its east field. Laffy incurred costs of planting in May 2020, including seedlings and labour, of $28,000. At the time of planting, the cannabis seedlings had a fair value of $18,000. The cannabis are expected to be harvested and sell for $90,000 in August 2020 and Laffy expects to incur additional costs of $12,000 prior to harvest. There are no costs to sell. Assuming that cannabis seedlings are a biological asset, how should the seedlings be measured at initial recognition? a) Capitalized for $28,000. b) All costs related to the planting should be expensed. C) Capitalized for $50,000. d) Capitalized for $18,000. Question 22 (1 point) d) Capitalized for $18,000. Question 22 (1 point) A publicly traded company is harvesting apples to be sold to grocery stores throughout Canada. How should the apples be initially recognized after they have been picked? a) At the cost of the planting and picking of the apples. b) At the cost of the planting and picking of the apples less costs to sell the apples. c) At fair value less the selling costs. At fair value. Question 23 (1 point) Hoppy Bunny Farms (HBF) grows carrots and planted an acre of carrot seeds in July Question 23 (1 point) Hoppy Bunny Farms (HBF) grows carrots and planted an acre of carrot seeds in July 2020. At the time of planting, HBF expensed the costs of planting, including $14,000 for seeds, $8,000 in labour, and $7,500 in soil amendments. On July 31, 2020, HBF's year end, the company estimates that the immature carrots have a fair value of $40,000. It would cost HBF $3,000 to sell these carrots. HBF expects to incur a further $10,000 in costs in August prior to harvesting the carrots, which will be sold for approximately $120,000 less $2,000 in selling costs. HBF reports under the IFRS financial reporting framework. What amount will show in HBF's statement of financial position as at July 31, 2020, related to the carrots? a) None, all costs are expensed. b) $37,000 c) $29,500 d) $118.000