#2 and #3 are wrong. Please explain why.

Schefter Mining operates a copper mine in Wyoming. Acquisition, exploration, and development costs totaled $7.9 million. Extraction activities began on July 1, 2021. After the copper is extracted in approximately six years, Schefter is obligated to restore the land to its original condition, including constructing a park. The company's controller has provided the following three cash flow possibilities for the restoration costs: Cash Flow 1. $670,000 2. 770,000 3. 870,000 Probability 25% 25% 50% The company's credit-adjusted, risk-free rate of interest is 6%, and its fiscal year ends on December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round other intermediate calculations to the nearest whole dollar. Enter your answers in whole dollars.) Required: 1. What is the initial cost of the copper mine? 2. How much accretion expense will Schefter report in its 2021 income statement? 3. What is the book value of the asset retirement obligation that Schefter will report in its 2021 balance sheet? 4. Assume that actual restoration costs incurred in 2027 totaled $837,000. What amount of gain or loss will Schefter recognize on retirement of the liability? $ 1. Cost of copper mine 2. Accretion expense 8,460,443 16,814 $ 3. Book value $ 577,257 42,000 4. Loss $