Reference no: EM132995972

Problem 1: The cost of the wasting asset at initial recognition shall include:

i. Purchase price
ii. Developmental cost incurred before actual extraction of minerals
iii. Developmental cost expected to incur in the future at present value
iv. Cost incurred to explore the minerals in the property
v. Estimated cost of exploration to be incurred in the future at present value

Group of answer choices

Option 1: i, ii, iii, and v only

Option 2: i, ii, and iii only

Option 3: i, ii, iii, iv, and v

Option 4: i, ii, and iv only

Problem 2: The depletion of mineral resources is: (Choose the best description)

Group of answer choices

Option 1: The depletion rate multiplied by total tons extracted divided by estimated years to extract.

Option 2: The actual tons of minerals extracted multiplied by mining property cost divided by total estimated tons minerals to extract.

Option 3: The depletion rate multiplied by expected tons of minerals to extract.

Option 4: The depletion rate divided by the actual tons of minerals extracted.