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QUESTION 18 Jackpot Mining Company paid $1,200,000 in 2019 for a copper mine site and spent an additional $500,000 to prepare the mine for extraction

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QUESTION 18 Jackpot Mining Company paid $1,200,000 in 2019 for a copper mine site and spent an additional $500,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately 4 years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs: Cash Outflow Probability 1 $300,000 25% 2 400,000 45% 3 600,000 38% The credit-adjusted risk-free rate of interest is 10% Question The 2020 year-end adjusting entries for recognizing accretion of the asset retirement obligation would include: $29,711 $32,682 $43,500 $26,740

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