Question 6 (20 points) Question 6 (20 marks) Pil Bara Ltd is a mining company and commences operations on 1 January 2023. During 2023, Pil Bara Ltd explores two potential areas for mining and incurs and pays for the following costs. Area Exploration and evaluation costs (sm) A B 26 17 43 Total Other information: In 2024 copper is discovered at Site B. Site A is abandoned because economically recoverable reserves were not proven and as such, an impairment loss for site A is incurred. Of the $17 million at Site B. $8 million relates to tangible assets and $9 million relates to intangible assets. At site A, $14 million of the expenditure related to tangible assets and $12 million related to intangible assets. Development costs of $70 million are incurred (not paid) at Site B (to be written off on a production basis) in 2024. The development costs include $56 million in property, plant and equipment (PPE) and $14 million in intangibles. This expenditure will be depreciated and amortised on a production basis. Development at Site B concludes at the beginning of 2024, and production commences at Site B at It is estimated that the amount of copper at Site B is 25 million tonnes. The current sale price is $3950 per tonne. In 2025, Pil Bara Ltc extracts 2.3 million tonnes at a production cost of $9.5 million and sells 4.8 million tonnes on account. Required: Prepare the journal entries to record the above transactions in accordance with AASB 6 Exploration for and Evaluation of Mineral Resources. Show all necessary calculations under each journal entry