* Answer must show your workings in excel sheet format.

World Oil and Gas Corporation completes construction of an offshore oil platform and places it into service on January 1, 2018. World Oil and Gas Corp. is legally required to dismantle and remove the platform at the end of its useful life which is estimated to be 10 years. On January 1, 2018, World Oil and Gas Corp. recognized a liability for an asset retirement obligation and capitalized an amount for an asset retirement cost. It estimated the initial fair value of the liability using an expected present value technique. The significant assumptions used in that estimate of fair value are as follows:

a. Labor costs are based on current marketplace wages required to hire contractors to dismantle and remove offshore oil platform. World Oil and Gas Corp. assigns probability assessment to range of cash flows estimates ad follows:

Cash Flow Estimate	Probability Assessment
$250,000	10%
175,000	60%
200,000	30%