The following information is for Company Xs purchase of a coal mining site to be used for 5 years. Cost (paid cash) $2,400,000 Restoration cost back original condition after 5 years 100,000 Prevailing interest rate is 5%.

How much is capitalized for the cost of the coal mine?

Present value of $1 table

	5%	6%	8%	10%
1	0.95238	0.94340	0.92593	0.90909
2	0.90703	0.89000	0.85734	0.82645
3	0.86384	0.83962	0.79384	0.75131
4	0.82270	0.79210	0.73503	0.68301
5	0.78353	0.74726	0.68059	0.62092
6	0.74621	0.70496	0.63017	0.56447
7	0.71068	0.66506	0.58349	0.51316
8	0.67684	0.62741	0.54027	0.46651