On January 1, 2021, BP purchased the rights to operate an oil field in Baytown, Texas for $200 million and spent $150 million on exploration and development costs. The extraction is expected to be completed in 10 years, and BP is obligated to restore the land around the oil field to its original condition and remove all hazardous materials. Estimates for the cost of this restoration and their probabilities are provided below. The appropriate risk-adjusted interest rate for BP is about 6%. BP's fiscal year ends on December 31. Assume all the costs have been paid in cash.

scenario: Cash Outflows: Probability:

a.) $8 million 50%

b.) $13 million 35%

c.) $18 million 15%

1.) record the journal entry for BP to record the purchase of the oil field

2.) record the journal entry for BP with regard to accretion expense for the fiscal year ended