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 $50​550 Contractor fees for exploratory drilling, including GST $2,500​27,500 Hire of drilling equipment for contractor use, including GST of $500​5,500 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?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 $50​550
Contractor fees for exploratory drilling, including GST $2,500​27,500
Hire of drilling equipment for contractor use, including GST of $500​5,500
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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