4. Pa. Mining Company drills for natural gas in northern Pennsylvania. The company paid $2,500,000 in 2020 for the right to drill on 500 acres of land. Additional costs paid in 2020 to prepare to drill and extract the gas were $1,000,000. After the gas is extracted in three years the company is required to restore the land to its original condition. Estimated costs of the restoration at the end of the three years is $700,000. Interest rate is 8%. Actual restoration costs paid at the end of the three years was $685,000. Required: 1. Determine the cost of the drill site and prepare the journal entry to record the acquisition of the site. 2. Calculate the accretion expense for each year. 3. Record the journal entry for the payment of the restoration costs