6. Hardy Boys Mining Company purchased a piece of land for $5,000,000 with the intention of mining granite from the site. Hardy Boys paid $80,000 to develop the mine and spent $1,000,000 on mining equipment. The mining equipment is specific to the site and cannot be used once the company is done at this location. Additionally, the local government requires Hardy Boys to restore the land once they are done mining. The best estimate for the restoration costs are $2,000,000, and Hardy Boys expects to pay these in 6 years when they are done with this location. The company's interest rate is 5%. a. What is the present value of the Asset Retirement Obligation? b. What is the total amount that gets capitalized as the cost of the mine? | c. How much accretion expense is recorded in the first year? 7. Tacos and Tangerines Restaurant is going to build a new restaurant. The company purchased a piece of land for $100,000. An existing building was on the land, and it cost $10,000 to have the building razed. However, Tacos and Tangerines was able to sell some of the salvaged material from the building for $5,000. Tangerines and Tacos installed fencing, a patio, and a sprinkler system for $25,000. Architects fees for the new building are $75,000, and it cost $350,000 to build the new restaurant. They also spent $7,000 in legal costs to purchase the land and paid $6,000 to a title company. Kitchen equipment, dining tables and chairs, and bar equipment totaled $200,000. a. How much should Tacos and Tangerines capitalize for the land? b. How much should Tacos and Tangerines capitalize for the building? c. How much should Tacos and Tangerines capitalize for the land improvements