7. Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,150,000 in 2018 for the mining site and spent an additional $630,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately 4 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 possibilities for the restoration costs: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

	Cash Outflow			Probability
1	$	330,000			25	%
2		430,000			40	%
3		630,000			35	%

To aid extraction, Jackpot purchased some new equipment on July 1, 2018, for $150,000. After the copper is removed from this mine, the equipment will be sold. The credit-adjusted, risk-free rate of interest is 10%. 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.

Determine the cost of the copper mine. (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)

Cost of copper mine?

Prepare the journal entries to record the acquisition costs of the mine and the purchase of equipment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollars.)

8. In 2018, Bratten Fitness Company made the following cash purchases:

The exclusive right to manufacture and sell the X-Core workout machine from Symmetry Corporation for $203,000. Symmetry created the unique design for the machine. Bratten also paid an additional $11,500 in legal and filing fees to attorneys to complete the transaction.

An initial fee of $260,000 for a three-year agreement with Silvers Gym to use its name for a new facility in the local area. Silvers Gym has locations throughout the country. Bratten is required to pay an additional fee of $5,300 for each month it operates under the Silvers Gym name, with payments beginning in March 2018. Bratten also purchased $403,000 of exercise equipment to be placed in the new facility.

The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $22,000. The book includes healthy recipes, recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its new facility, as well as make it available online.

Required: Prepare a summary journal entry to record expenditures related to initial acquisitions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)