Ex 17.6 The Gloaming company incurred the following costs during a period in relation to a specific area of interest and wants to capitalise its E & E costs on an area of interest method.The following costs were incurred: Cash paid to acquire seismic study from government(GST exempt) 3,000 Cash paid to acquire exploration rights(GST exempt) 10,000 Cash paid to acquire fencing materials for an area-of-interest, including GST of $80 880 Contractor fees for labour to set up the fencing, including GST of $50550 Contractor fees for exploratory drilling, including GST $2,50027,500 Hire of drilling equipment for contractor use, including GST of $5005,500 Salary of project manager 60,000 Stationery and other office supplies, including GST $30 330 Gloaming company non executive directors fees paid 160,000 Required: Which of the above costs can be capitalised as E& E assets?
Ex 17.6 The Gloaming company incurred the following costs during a period in relation to a specific area of interest and wants to capitalise its E & E costs on an area of interest method.The following costs were incurred:
Cash paid to acquire seismic study from government(GST exempt) 3,000
Cash paid to acquire exploration rights(GST exempt) 10,000
Cash paid to acquire fencing materials for an area-of-interest, including GST of $80 880
Contractor fees for labour to set up the fencing, including GST of $50550
Contractor fees for exploratory drilling, including GST $2,50027,500
Hire of drilling equipment for contractor use, including GST of $5005,500
Salary of project manager 60,000
Stationery and other office supplies, including GST $30 330
Gloaming company non executive directors fees paid 160,000
Required:
Which of the above costs can be capitalised as E& E assets?
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