Zip Oil Mining Company has the following information.

The company is required to restore the land to an acceptable condition for a housing development after completion.

Amounts paid for the right to drill	$8,000,000
Costs of drilling	$654,120
Intangible development costs incurred in exploring	$932,000
Assume all items are paid with cash.
Projected cash flow possibilities are as follows:	Cash Outflow	Probability
Estimate #1	$343,000	59%
Estimate #2	$190,000	41%
The company's adjusted risk free rate	2%
The project will last	2 years

a. Assume that at the end of the project Zip Oil Mining Company must ultimately pay the following amount to properly restore the land: Actual costs incurred to restore the asset = $500,000 CALCULATE THE GAIN OR LOSS ON THE RESTORATION OF THE ASSET.

b. Assume that at the end of the project Zip Oil Mining Company must ultimately pay the following amount to properly restore the land: Actual costs incurred to restore the asset = $500,000 INDICATE THE IMPACT ON THE LIABILITY SIDE OF THE BALANCE SHEET.

c. Assume that at the end of the project Zip Oil Mining Company must ultimately pay the following amount to properly restore the land: Actual costs incurred to restore the asset = $500,000 INDICATE THE IMPACT ON STOCKHOLDER'S EQUITY.

d. Assume that at the end of the project Zip Oil Mining Company must ultimately pay the following amount to properly restore the land: Actual costs incurred to restore the asset = $200,000 CALCULATE THE GAIN OR LOSS ON THE RESTORATION OF THE ASSET.

e. Assume that at the end of the project Zip Oil Mining Company must ultimately pay the following amount to properly restore the land: Actual costs incurred to restore the asset = $200,000 CALCULATE THE GAIN OR LOSS ON THE RESTORATION OF THE ASSET. THEN, CONSIDER THE JOURNAL ENTRY REQUIRED TO SATISFY THE LIABILITY. INDICATE THE IMPACT THAT THE JOURNAL ENTRY HAS ON THE STOCKHOLDER'S EQUITY SECTION (ONLY) OF THE BALANCE SHEET.