Zat Corp acquired the right to mine a piece of land at a cost of $100,000. The related development costs were an additional $50,000, and legal costs were $20,000 all of which will contribute to Yam extracting an expected 40,000 tonnes. In the first year of operations, Yam mined 7,000 tonnes and sold 4,000 tonnes.

Instructions:

What amounts will be shown on the Statement of Financial Position and Income Statement at the end of year 1 as a result of mining operations?