Brief Exercise 10-5 (Algo) Asset retirement obligation [LO10-1] Smithson Mining operates a silver mine in Nevada. Acquisition, exploration, and development costs totaled $6.3 million. After the silver is extracted in approximately five years, Smithson is obligated to restore the land to its original condition, including constructing a wildife preserve. The company's controller has provided the following three cash flow possibilities for the restoration costs: (1) $570,000,20% probability: (2) $620,000,50% probability, and (3) $720,000,30% probability. The company's credit-adjusted, risk-free rate of interest is 7% What is the book value of the asset retirement liability at the end of one year? Assuming that the actual restoration costs incurred after five years are $666,000, what amount of gain or loss will Smithson recognize on retirement of the liability? Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Enter your answers in dollars not in millions of dollars. (EV of \$1. PV of \$1. EVA of \$1. PVA of \$1. FVAD of \$1 and PVAD of \$1)