Milicent Mining Limited (MML) paid $5.6 million for a mining property on 1 July 2015 after the geologists of the exploration company estimated that a gold deposit found on the property would produce 42 000 ounces of gold. In each of the years 2015/2016 and 2016/2017, MML spent $225 000 per annum developing the property and, during 2016/2017, the company purchased and installed the following assets:

Asset	Costs	Estimated useful life
Mine buildings	$500 000	25 years
Mining equipment	820 000	15 years
Processing equipment	260 000	10 years

The buildings and mining equipment cannot be economically removed from the mine site, but the processing equipment can be removed. On 30 June 2017, engineers estimate that development and construction activities have resulted in $680 000 worth of restoration costs that MML is obligated to spend at the end of the mine’s life under Commonwealth legislation. The company nominates a discount rate of 8% as relevant for its gold operations.

Production started on 1 July 2017 and company geologists estimate that it will take eight years to exhaust the economically recoverable reserves, after which time the mine property is expected to be sold for $100 000. Activities in the 2017/2018 financial period were:

Ounces of gold mined	5 500
Ounces of gold sold	4 800
Selling price per ounce	$ 450
Production costs (before depreciation and amortisation)	$510 000
Administration expenses	$ 90 000
Selling expenses	$205 000
Mine site restoration costs arising from production	$160 000
Income tax expense	$150 000

Required

Prepare relevant extracts from the statement of comprehensive income for MML for the year ended 30 June 2018 in accordance with the relevant current accounting standards. Tax-effect accounting and notes to the accounts are not required.

Include all workings and provide explanations for the accounting policies you adopt.