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(d) During 2020, AEL built the infrastructure for an outdoor cinema in a rural area at a total cost of $10 million, paid in cash.
(d) During 2020, AEL built the infrastructure for an outdoor cinema in a rural area at a total cost of $10 million, paid in cash. The government's approval granted to AEL was for 10 years of operation, conditional upon the company's remediating the site and establishing a country park visitors' centre after 10 years. The estimated cost of remediation is $2.5 million. An appropriate interest rate for this obligation is 5%. Assume that AEL has grouped the $10 million construction costs and the remediation costs in an account called "Outdoor cinema", and it used the straight-line method to depreciate this asset. The outdoor cinema was completed at end of 2020 and it was opened in January 2021. Required: Prepare all journal entries pertaining to the outdoor cinema and site restoration obligation for the years ended December 31, 2020 to 2022. Use financial year end date for all journal entries. Round the numbers in your answers to the nearest dollar
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