Rogers Company obtained the rights to a new mine in northern Labrador on January 1, 2000, for $18,000,000 in cash. The company depreciates similar assets using straight-line depreciation with no residual value. As part of this purchase, the province requires the company to return the land to its natural state at the end of the mining activity. The company estimates that it will operate the mine for 20 years, at which time it will cost $3,500,000 to restore the site to its original state. The company uses a 6% discount rate for such projects and has a December 31 year-end.

• a) Record the journal entry for the purchase of the rights to the new mine (use the asset account Rights to NL Mine).
• b) Calculate and record the journal entry for the asset retirement obligation associated with the project.
• c) Prepare the journal entries for the years ended December 31, 2000, and December 31, 2001.