1. XYZ Inc., a private company following ASPE developed a new gold mine during 2020, and is required by provincial law to restore the site to its previous condition once mining operations are completed. The company estimates that the mine will close in 20 years and that the land restoration will cost $ 5,000,000. XYZ uses a 6% discount rate.

Provide the necessary journal entries relating to the information above for 2020. Year end is December 31, 2020.