Chapter 10 Exercise E10-4 Jackpot Mining operates a copper mine. Company paid $1,000,000 in 2013 for mining site and spent additional $600,000 to prepae mine for extraction of copper. After copper is extracted in approximately 4 years, company is required to restore land to its original condition including repaving of roads and replacing a greenbelt. Company provided following three cash flow possibilities for the restoration costs: Cash outflow Probability 1) 300,0000 25% 2) 400,000 40% 3) 600,000 35% To aid extraction, Jackpot purchased new equipment on July 2, 2013 for $120,000. After the copper is removed from mine, equipment will be sold. The credit-adjusted risk-free rate of interest if 10%. 1) Determine the costg of the copper mine 2) Prepare journal entries to record the acquisition costs of the mine and the purchase of equipment