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Question - On 1 April 2019 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:
Cost
Useful life
Mine site building
$1,500,000
20 years
Mining equipment
2,400,000
15 years
Machineries and equipment (portable)
750,000
8 years
The above assets were ready for use on 1 July 2019. The Mine site building and the mining equipment are attached to the area of interest. For the year ending 30 June 2020 the entity had extracted 10 000 ounces of gold.
What is the total depreciation/amortisation expense for the capitalised development costs for the year ending 30 June 2020?
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