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TLK Industries Limited purchased a strip mine for cash on April 1, 2020 at a cost of $6,000,000. TLK expects to operate the mine for 10 years, at which it is legally required to restore the surrounding area to its original state. It is estimated that it will cost $500,000 to do this at the end of the mine's useful life. The company's year-end is December 31, and TLK follows ASPE.
Problem 1: Explain how these entries would be different if TLK followed IFRS instead.
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