1. Determine the cost of the copper mine.

2 Prepare the jounral entries to record the acquistiom costs of the mine and the purchase of equipment. (2 different entries)

Exercise 10-4 (Algo) Cost of a natural resource; asset retirement obligation (LO10-1) Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,600,000 in 2021 for the mining site and spent an additional $720,000 to prepare the mine for extraction of the copper . After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilties for the restoration costs: (FV of $1. PV of $1. FVA of SI, PVA of S1. EVAD of $1 and PVAD 0:51) (Use appropriate factor(s) from the tables provided.) Cnh Buttle $420,000 520,000 720,000 Probability 250 453 300 Toald extraction, Jackpot purchased some new equipment on July 1, 2021, for $240,000. After the copper is removed from this mine, the equipment will be sold. The credit-adjusted, risk free rate of Interest is 12% Required: 1. Determine the cost of the copper mine. 2. Prepare the journal entries to record the acquisition costs of the mine and the purchase of equipment