JAS Industries Limited purchased a strip mine for cash on April $1,2023$ at a cost of $$5,212,000.$

JAS expects to operate the mine for $10$ years, at which it is legally required to restore the

surrounding area to its original state. It is estimated that it will cost $$506,000$ to do this at the end

of the mine$$s useful life. The company$$s year$-$end is December $31,$ and JAS follows ASPE.

Prepare the journal entry to record the purchase of the mine and to record the asset

retirement obligation for the mine on April $1,2023.$ Based on the effective interest rate of

$5\%,$ the present value of the asset retirement obligation $($i$.$e$.,$ its fair value$)$ on the date of

acquisition is $$310,640.($Credit account titles are automatically indented when the amount is

entered. Do not indent manually. List all debit entries before credit