On 1 April 2008, Ulladulla Mining Ltd Assessed That Its

question 5

Multiple Choice

On 1 April 2008, Ulladulla Mining Ltd assessed that its Mollymook area of interest contained economically recoverable reserves of 50,000 ounces of gold. On the same day the entity installed the following assets:

The above assets were ready for use on 1 July 2008. Ulladulla Mining Ltd expects to extract the entire reserves in 5 years. For the year ending 30 June 2009 the entity had extracted 5,000 ounces of gold.
What is the journal entry to recognise amortisation and depreciation expense of above capitalised developments costs?

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