D) $82,000 Use the following to answer questions 12 and 13: Clark Griswold Mining Company paid $2,000,000 to obtain the rights to operate a coal mine. Costs of exploring for the coal deposit totaled $1,500,000 and development costs of $5,000,000 were incurred in preparing the mine for extraction activities. Griswold also purchased some new mining equipment for $200,000 to be used for extracting coal from the mine. After the coal is extracted in approximately five years, Clark Griswold is obligated to restore the land to its original condition. Griswold's credit-adjusted, risk-free rate of interest is 7%. The company's engineer has provided the following three cash flow possibilities for the future restoration costs: Probability 10% 60% 30% Cash Flow $1,000,000 1,400,000 1,800,000 The total capitalized cost of the coal mine is closest to: A) $8,500,000 B) $9,555,225 C) $8,700,000 D) $9,980,000 12. 13. Total accretion expense recognized over the five year mining period is closest to: A) $1,480,000 B) $424,775 C) $624,775 D) $0