Greasy Ltd Has a Mining Operation in Western Australia

question 41

Multiple Choice

Greasy Ltd has a mining operation in Western Australia.It has reached the production stage with $10 million in costs carried forward.The company is leasing the mining rights to the area and at the beginning of this period the remaining term on the lease is 99 years.The expected production in tonnes from the area is 8 million.In the current period 500,000 tonnes were extracted.Revenues are expected to be highest in the early years of the mine's life and to decline at a rate of 15 per cent per annum.How much of the accumulated costs should be allocated to production this period (round to the nearest dollar) ?

• A) $101,010
• B) $625,000
• C) $75,000
• D) $150,000
• E) None of the given answers.

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Definitions:

Karyotype

A karyotype is the number and visual appearance of the chromosomes in the cell nuclei of an organism or species, used to look for chromosomal abnormalities.

Observable Trait

A characteristic or feature of an organism that can be seen or measured directly.

Deoxyribonucleic Acid

The molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Chromosomes

Rod-shaped portions of DNA that are organized in 23 pairs.