Hidalgo Corp., a calendar$-$year firm, completed the construction of a hazardous waste disposal plant in December of Year $1,$ and it was placed into service in January of Year $2.$ Hidalgo treats contaminated soils, making them fit for use in agriculture. Federal regulations require the plant to be dismantled and land reclaimed at the of the plant's life.

You have been given the following data to account for the related asset retirement obligation $($ARO$)$:

Total construction cost of the plant excluding closure and removal costs are $$200$ million. The plant has a useful life of $20$ years and Hidalgo uses straight$-$line depreciation.

Estimated cost to dismantle and reclaim the property is $$37,205,800.$

Dismantling and reclamation activities will be completed in the year following the end of the plant's life.

Discount rate is $6\%.$

$3$a$.$ Record the capitalization of the ARO on December $31,$ Year $1.$ You may use Excel if needed.

$3$b$.$ Prepare an amortization table on Excel for the ARO similar to what is shown in the notes,

$3$c$.$ Prepare all adjusting entries required at the end of Year $5.$

$3$d$.$ At December $31,$ Year $22,$ the ARO is settled for $$38$ million. Write all necessary journal entries on that date.