BC Co. constructed a building on a mine site at a construction cost of $1,200,000 + 7%PST+5%GST. At the exhaustion of the mineral extraction, estimated to be in 20 years, the site must be restored to strict BC environmental standards. The estimated liability in 20 years for this restoration is $2,000,000; 80% which is attributable to the annual site degradation through annual mining and the remainder to the building remediation 20 years hence. BC Co. employs a discount rate of 4%. What is the amount to be capitalized as the cost of the building?