ABC purchase a piece of land for the purpose of developing a gold mine. ABC is legally required to remove all structures and convert the mine site to a wildlife sanctuary at the end of its estimated 11-year useful life, and at the discount rate to use should be 5.1% . ABC estimates that it will have to spend $11000000 to decommission the site and reclaim the land when operations cease. ABC use straight-line depreciation. The company follows IFRS.

Required: prepare journal entries to recognize the site restoration cost the company would record upon initial acquisition and subsequently for the first year.