January 2020 about the decommissioning and reclamation costs, which were revised to $77,200,000. As a result, the mine asset was adjusted to reflect an initial cost of $139,071,325 and the decommissioning obligation was adjusted to $24,071,325 in January 2020. The useful life is still 20 years and the discount rate used was revised to 6%.

It is now December 2040. There were no changes in the estimated amount of the decommissioning costs between 2020 and 2040 and all annual recurring journal entries have been made. The diamond extraction activities have now ceased. The actual cost to decommission and reclaim the mine site to the agreed-upon conditions is $77,450,000. SDC has not paid the cost yet, and Wang Wei has been asked to prepare the journal entry required to derecognize the decommissioning provision.