Aurora Mining Company paid $1,200,000 in 2021 for a copper mine site and spent an additional $500,000 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:

	Cash Outflow	Probability
1	$300,000	25%
2	400,000	45%
3	600,000	30%

Question

The credit-adjusted risk-free rate of interest is 10%.

Question

Journal entries to record the acquisition costs of the mine would include:

		a debit to Copper Mine for $1,700,000
		a debit to Copper Mine for $2,135,000
		a debit to Copper Mine for $1,997,109
		a debit to Copper Mine for $3,017,301