Exercise 10-4 Cost of a natural resource; asset retirement obligation [LO10-1 Jackpot Mining Company operates a copper mine in central Montana. The company pa 2018 for the copper. After the copper is extracted in approximately 4 years, the company is required to resto land to its original condition, including repaving of roads and replacing a greenbelt. The comp mining site and spent an additional $750,000 to prepare the mine for extraction of the id $1,750,000 in provided the following three cash flow possibilities for the restoration costs: (FV of $1, PV of $1, FVA of 1. PVA of S1. FVAD of $1 and PVAD of $1) (Use appropriate factors) from the tables provided.): ok Cash outflow $450,000 550,000 750,000 Probability 15 45% 40% nces To aid extraction, Jackpot purchased some new equipment on July 1, 2018, for $270,000. After the copper is removed from this mine, the equipment will be sold. The credit-adjusted, risk-free rate of interest is 12%. Required: 1. Determine the cost of the copper mine. 2. Prepare the journal entries to record the acquisition costs of the mine and the purchase of equipment. Complete this question by entering your answers in the tabs below. Required 1 Required 2