CoursHeroTranscribedText: Problem 1 (17 marks) A company purchased a gold mine at a cost of $880,000 on January 1, 2021. Development costs to prepare the mine for the intended use totalled $115,000. The legal obligation to restore the property after the mine has been exhausted is $240,000. The relevant discount rate is 6% and the useful life is 25 yea rs. The company's year end is December 31". Required: A) Prepare the journal entry to record the acquisition of the asset on January 1, 2021 assuming cash is used to pay for the asset and related costs. B) Prepare the December 31, 2021 and December 31, 2022 journal entries. C) Based on technological advances assume that in 2036 the costs to decommission the asset are re-estimated to $215,000. Prepare the journal entry to record this change on January lst, 2036 and the required adjusting entries on December 31, 2036. 0) Use of the mine wrapped up earlier than expected in January 2043. The actual cost of decommissioning the asset was $185,000. Record the journal entries to report the decommissioning of the asset. Problem 2 (5 marks) Bahrain Corporation follows a policy of a 10% depreciation charge per year on machinery. On June 30, 2020, machinery with a cost of $ 120,000 and accumulated depreciation through December 31, 2019, of$ 90,000 was exchanged, along with $ 75,000 cash, for a parcel of land with a fair market value of$ 115,000. Required Prepare the appropriate journal entries for Bahrain Corporation for the above exchange