A company buys extraction equipment for $5,000,000 on January 1, 2019. The life of the equipment is 10 years, the expected cost to dismantle it at the end of 10 years is $800,000 (present value at 8% is $370,522), and straight line depreciation is used. 8% is an appropriate interest rate for this company. How much ARO should be recorded for 2019 as a result of these events?

370,522

800,000

300,000

500,000