On $1$ January $20$x$1,$ Company ELY commenced mining for silver from a field.

Under the regulations, ELY is required to dismantle the mining equipment at the end of its five

year licence. On $1$ January $20$x$1,$ ELY assesses that the dismantling of the equipment has an

estimated cost of $$6,000,000$ payable on $31$ December $20$x$5.$ ELY's cost of capital is $8\%$ per

annum.

What is the provision $($related to dismantling costs$)$ that ELY would report in its profit or loss

statement for year ended $31$ December $20$x$2$ and its statement of financial position as at $31$

December $202$ in respect of its silver mining operations?