3. Gold Miner Extractors (GME) purchased a complex piece of mining equipment at a cost of $500,000. The equipment is located in a mine already and is unable to be moved to other locations. As part of the purchase, GME accepted the responsibility to restore the mine to its original condition after the machines useful life expires in 5 years. GME has agreed to pay $300,000 at the end of 5 years in order to restore the mine. The appropriate interest rate to use in computing the present value of mine restoration obligation is 5%. What is the journal entry GME should make to record recognize the provision relating to the future restoration obligation?

Please explain your reasoning.