Reference no: EM131600856

Question - Hill Mining incurs the following exploration and evaluation costs at AreaA over the years indicated: 30th June 2015: $14,000. 30th June 2016: $10,000. 30th June 2017: $12,000. By the 30th of June 2017, Gold of an economically recoverable amount is discovered at AreaA. The site is estimated to contain 40,000 kilograms of Gold. After the discovery, Hill Mining constructs roads and infrastructure in July 2017 at a cost of $150,000. Portable extraction machinery, with a useful life of 15 years, is also put in place at a cost of $200,000. Production begins in March 2018. The cash cost of extraction and processing is $7.50 per kilogram. During the year ended 30th of June 2018, 2000 kilograms of Gold are extracted. Assuming that Hill Mining capitalises it's exploration and evaluation costs, what is the carrying value of the Gold in the books of Hill Mining?