BBC Inpold $2 million to obtain the rights to operate a coal mine in Tennessee Costs of exploring for the coa deposit tocated $1,500,000 and development costa al 55 million were incurred in preparing the mine for extraction, which begenan January 2, 2011. After the coal is extracted in approximately free years, BBC Incis obligated to restore the land to its original condition. The company's controller has provided the following tiwee cash flow possibilities for the restoration costs: Cashflow Probability 15 1,000,000 10 2$ 1,400,000 60 JS 1,800,000 30 The company's credit-adjusted, risk-free rate of interest is 7%, and its fiscal year ends on December 31 Required & What is the brutal cost of the coal mine? (Round computations to nearest whole dollar) b. How much accretion expense will 00C Inc report in its 2011 and 2012 income statement