A company pays $912,000 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $72,000 cash to access the mine, which is estimated to hold 120,000 tons of iron. The estimated value of the land after the iron is removed is $24,000. 1. Prepare the January 1 entry to record the cost of the iron mine. 2. Prepare the December 31 year-end adjusting entry if 26,000 tons of iron are mined but only 22,000 tons are sold the first year.