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Hunter Mining Ltd has incurred the following costs during the period in relation to a specific area of interest. Its accounting policy is to capitalise all E&E costs on an area of interest basis.Ignore GST
Salaries and other expenses of general management
$440
000
Cash paid to acquire exploration rights
86
Cash paid to acquire fencing materials to mark out the area-of-interest
20
Contractor fees for labour to set up the fencing
35
Diamond Ltd- non-executive directors' fees paid
305
Bank Fees for banking activities associated with E & E activities
23
500
$909
Require
Question 1: Determine the amount of the E&E asset to be capitalised by Hunter Mining Lted in relation to the area of interest.
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