On January 1, 2020 Dunley Mines has purchased a new mining site for $750,000 which will be mined for 20 years. A condition of the purchase was that Dunley would restore the mining site to its natural state in 20 years. Dunley has estimated the cost of restoring the land to be $425,000. The effective interest rate is 5%. Dunley follows ASPE.

Required:

1. Prepare the journal entries for Dunley for January 1, 2020 through December 31, 2021.
2. List how the accounting would be different if Dunley followed IFRS and just 80% of the restoration cost is related to acquisition with the remaining costs being a result of production or operating the mine. (Note: Include other differences and not just those related to the 80%).