Like many mining companies, one of the major liabilities of OZL is the Provisions account, relating

to its obligations for mine rehabilitation, restoration and dismantling. However, uncertainty exists as

to the amount of rehabilitation obligations, which is subject to the changes in many factors. Assume

that at the date of acquisition, the carrying amount of Provisions in the books of OZL is $$130$ million

while BHP assessed the Provisions as having a fair value of $$380$ million. How would BHP account

for this difference in value for the Provisions account at the date of acquisition? What if in a subsequent

year after the acquisition, the Provisions account is settled by OZL for $$150$ million? Record all

necessary adjusting entries as at the date of acquisition and in the year of the settlement. Include any

tax effect entries and provide a logical explanation for each line entry you have provided.