A business acquired a long-lived tangible asset on January 1, Year 1. It recorded a liability for an asset retirement obligation (ARO), and it depreciates the asset retirement cost (ARC), using the straight-line method. The estimated useful life of the long-lived tangible asset is 5 years, the credit-adjusted risk-free (CARF) rate is 10%, the market rate is 12%, the undiscounted estimated cash flows are $402,627.50, and no changes occur in those cash flows. The entity settles the ARO on December 31, Year 5, for $419,999.50. The present values of 1 for 5 years at 12% and 10% are .567430 and .620921, respectively.

Based on this information, enter in the designated cells the appropriate amounts for each item below. Round all amounts to the nearest whole number. Indicate losses by using a leading minus (-) sign.

Item	Amount
1. Beginning ARO
2. Period depreciation of the ARC
3. Year 2 accretion expense
4. ARO balance at end of Year 3
5. Settlement gain (loss)