Oriole Products Limited leases property on which copper has been discovered. The lease provides for an immediate payment of $471,960 to the lessor before drilling has begun and an annual rental of...


Oriole Products Limited leases property on which<br>copper has been discovered. The lease provides for<br>an immediate payment of $471,960 to the lessor<br>before drilling has begun and an annual rental of<br>$54,990. In addition, the lessee is responsible for<br>cleaning up the waste and debris from drilling and<br>for the costs of reconditioning the land for farming<br>when the mine is abandoned. It is estimated that<br>the legal obligation related to cleanup and<br>reconditioning has a present value of $45,770.<br>Oriole Products has publicly pledged an additional<br>$29,970 (present value) to reclaim the area<br>surrounding the mine. Oriole Products prepares<br>financial statements in accordance with IFRS.<br>Determine the amount that should be capitalized<br>in the Mineral Resources asset account as a result<br>of the lease agreement.<br>Amount capitalized $Enter your answer in<br>accordance to the question statement eTextbook<br>and Media Determine the amount that should be<br>capitalized in the Mineral Resources asset account<br>as a result of the lease agreement, assuming Oriole<br>Products prepares financial statements in<br>accordance with ASPE. Amount capitalized $Enter<br>your answer in accordance to the question<br>statement 547700<br>

Extracted text: Oriole Products Limited leases property on which copper has been discovered. The lease provides for an immediate payment of $471,960 to the lessor before drilling has begun and an annual rental of $54,990. In addition, the lessee is responsible for cleaning up the waste and debris from drilling and for the costs of reconditioning the land for farming when the mine is abandoned. It is estimated that the legal obligation related to cleanup and reconditioning has a present value of $45,770. Oriole Products has publicly pledged an additional $29,970 (present value) to reclaim the area surrounding the mine. Oriole Products prepares financial statements in accordance with IFRS. Determine the amount that should be capitalized in the Mineral Resources asset account as a result of the lease agreement. Amount capitalized $Enter your answer in accordance to the question statement eTextbook and Media Determine the amount that should be capitalized in the Mineral Resources asset account as a result of the lease agreement, assuming Oriole Products prepares financial statements in accordance with ASPE. Amount capitalized $Enter your answer in accordance to the question statement 547700

Jun 09, 2022
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