The following data applies to questions $2$ and $3$

During $2008$ financial year, Lee Ltd commenced the search for oil and gas. It carried out exploratory drilling and evaluation at two individual geological locations known as $$Hawk$$ and $$Tiger$.$ Expenditure was incurred on the wages of staff and the services provided by contractors. The accounting policy of Lee Ltd is to capitalise exploration and evaluation expenditure when allowed by Accounting Standards.

During the $2009$ financial year, Tiger moved from the exploration and evaluation stage to the development stage. Operations at Hawk are continuing, and no decision has been made about the commercial viability of the site.

During $2010$ financial year, Hawk failed to show the presence of any promising geological formations and the decision to abandon the area was taken before year end. Tiger moved from the development stage to the production stage. It is expected to yield $20$ million barrels of oil over its economic life. $5$ million barrels of oil have already been extracted from Tiger by $30$ June $2010$ and $1$ million of these are still on hand at year$-$end. All sales for the year were at

$$100$ per barrel.

The following information is available on the expenditure incurred in relation to each of the two locations for the years ended $30$ June $2008$ to $30$ June $2010.$

$200820092010$

Hawk $$$m $$$m $$$m

Exploration & Evaluation $802010$

Tiger

Exploration & Evaluation $5050$

Development $250$

Construction $150$

Cash Production Costs $200$

Question $2$

In accordance with AASB $6$ Exploration for and Evaluation of Mineral Resources, what is the carrying amount of the exploration & evaluation $($E&E$)$ assets on the company$$s balance sheet as at $30$ June $2009?$

A$.$ E&E Assets $<=99$ million

B$.100$ million $<=$ E&E Assets $<=149$ million

C$.150$ million $<=$ E&E Assets $<=199$ million

D$.200$ million $<=$ E&E Assets $<=249$ million

E$.$ E&E Assets $>=250$ million

Question $3$

In accordance with AASB $6$ Exploration for and Evaluation of Mineral Resources, what is the net profit for the year ended $30$ June $2010?$ Round your answer to the nearest million.

A$.$ Net Profit $<=30$ million

B$.31$ million $<=$ Net Profit $<=60$ million

C$.61$ million $<=$ Net Profit $<=90$ million

D$.91$ million $<=$ Net Profit $<=120$ million

E$.$ Net Profit $>=120$ million