EXTRACTIVE INDUSTRIES Mine Co Ltd Stage 1 Mine Co Ltd had the following exploration and evaluation...

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EXTRACTIVE INDUSTRIES Mine Co Ltd Stage 1 Mine Co Ltd had thefollowing exploration and evaluation costs. Silver Mica $500,000$350,000 Exploration Costs Evaluation Costs $200,000 $200,000 OnJune 30, 2019 Mine Co. Ltd concluded their search and found thatMica did not contain any commercially viable quantities ofresources and therefore abandoned the area. Stage 2 During the yearended June 30, 2019, minerals were discovered at site Silver. Coststo develop the site are split between property, plant and equipment70% and intangible assets 30%. Further costs to develop the siteinclude another $500,000. Stage 3 On July 1, 2020 and the mine wentinto production stage of its operations Provide the journals forstage 1,2 and 3 of Mine Co's operations using the Area of InterestMethod. Narrations are not required

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Stage 1 Costs Silver Mica Exploration 500000 350000 Evaluation 200000 200000 Total 700000 550000 Stage 2 Silver Total Cost incurred 700000 PPE 70 4900000 Intangible Assets 30 2100000 Further cost 500000 PPE See Answer

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