Environmental Provision: 110. Recycle Exploration is involved with innovative approaches to finding energy reserves. Recycle recently built a facility to extract natural gas at a cost of $15 million. However, Recycle is also legally responsible to remove the facility at the end of its useful life of twenty years. This cost is estimated to be $21 million (the present value of which is $8 million). What is the journal entry required to record the environmental liability? Dr 110-Additional: What is the adjusting entries at the end of the first year, assume the interest rate is 10%: