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On 1 April 20X6 Botswana Mining Ltd (Botswana) assessed that its Mollymook area of interest contained economically recoverable reserves of 50,000 ounce of gold. On the same day the entity installed the following assets:
Mining site building: cost $1,500,000 useful life 20 years
Mining equipment (non-portable): cost $2,400,000, useful life 15 years Machineries and equipment (portable): cost $ 750,000, useful life 8 years
The above assets were ready for use on 1 July 20X6. Botswana expects to extract the entire reserves in 5 years. For the year ending 30 June 20X7 the entity had extracted 5,000 ounces of gold.
What is the total depreciation/amortisation expense for the capitalised costs for the year ending 30 June 20X7?
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