Problem
Teal Mountain Corporation acquires a gold mine at a cost of $405,000. Development costs that were incurred total $109,000, including $12,000 of depreciation on movable equipment to construct mine shafts. Based on construction to date, the legal obligation to restore the property after the mine is exhausted has a present value of $70,900. Teal Mountain has publicly pledged an additional $21,400 (present value] for improved reclamation of the area surrounding the mine.
• Prepare the journal entries to record the cost of the natural resource it Teal Mountain prepares financial statements in accordance with IFRS.