Use the information given below to answer Questions 31 - 32 ONLY under ASPE.

In addition to the information stated in SECTION III-A above, now assume the company had further determined during 2020 that some additional restoration costs would have to be paid at the end of the project. These costs were estimated at $680,000 for the entire year 2020. The company attributed these costs to the using of some of the mining equipment, which were located outside the mine, during the production process. The full amount of the additional costs were assumed to have been incurred at the end of 2020 and thus were to be recorded at the end of the year on December 31, 2020.

FYI: Information previously given for SECTION III-A

Stellar Mining Corporation [SMC] prospects for new minerals on nearby planets. It sets up operations on a neighboring planet Keplar after discovering vast deposits of a very rare mineral which is used in producing solid state fuel for space transportation. The Inter Planetary Board has been very strict on ecological preservation on planets under its governance and has been most careful not to follow ithe path of Planet Earth. SMC is required by the existing planetary laws to reclaim and restore the site once the mining operations are completed. The company expects to close the mine after 25 years of operation, at the end of 2040. These reclamation and restoration measures are expected to then cost $15,000,000. SMC uses an 8% annual discount rate and accrues interest semi-annually.

The cost of setting up the mine, classified as Plant and Equipment - Mining, amounted to $24,000,000. SMC attributes these costs to be the result of acquiring the mine and expects that no additional reclamation and restoration costs will be incurred in the future. It uses a fiscal year ending December 31.

[31] Calculate the amount of these additional costs that were to be recorded on December 31, 2020.

a. $95,683.

b. $680,000.

c. $141,637.

d. $145,894.

e. None of the above

[32] Determine the amount of the annual depreciation expense which the company would record for the full year 2021 using the straight line method.

a. $525,754.

b. $420,603.

c. $882,007.

d. $1,051,508.

e. None of the above.