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c Calendar My MCBS Library English (en) Mah BBC Inc paid $2 million to obtain the rights to operate a coal mine in Tennessee. Costs of exploring for the coal deposit totaled $1,500,000 and development costs of $5 million were incurred in preparing the mine for extraction, which began on January 2, 2011. After the coal is extracted in approximately five years, BBC Inc is obligated to restore the land to its original condition. The company's controller has provided the following three cash flow possibilities for the restoration costs: Cashflow Probability 1$ 1,000,000 10% 2$ 1,400,000 60% 3$ 1,800,000 30% The company's credit-adjusted, risk-free rate of interest is 7%, and its fiscal year ends on December 31. Required: a. What is the initial cost of the coal mine? (Round computations to nearest whole dollar.) b. How much accretion expense will BBC Inc report in its 2011 and 2012 income statements? e c Calendar My MCBS Library English (en) - Mah 3 $ 1,800,000 30% The company's credit-adjusted, risk-free rate of interest is 7%, and its fiscal year ends on December 31. Required: a. What is the initial cost of the coal mine?(Round computations to nearest whole dollar.) b. How much accretion expense will BBC Inc report in its 2011 and 2012 income statements? c. What is the carrying value (book value) of the asset retirement obligation that BBC Inc. will report in its 2011 and 2012 balance sheets? d. Assume that actual restoration costs incurred in 2016 totaled $1,370,000. What amount of gain or loss will BBC Inc. recognize on the retirement of the liability

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