A company operates a mine. The company paid $$2,000,000$ in Year $1$ for the mining site and spent an additional $$800,000$ to prepare the mine for extraction. After the mineral is extracted in approximately four years, the company is required to restore the land to its original condition. The company has provided the following three cash flow possibilities for the restoration costs:

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Cash Outflow Probability

$1$ $ $500,00025\%$

$2600,00040\%$

$3800,00035\%$

To aid extraction, the company purchased some new equipment on July $1,$ Year $1,$ for $$320,000.$ After the mineral is removed from this mine, the equipment will be sold. The credit$-$adjusted, risk$-$free rate of interest is $12\%.$

Required:

Determine the cost of the mine.

Prepare the journal entries to record the acquisition costs of the mine and the purchase of equipment.