On January 1 2012, Sparks Telecorp, Inc., invested idle cash of $12,500,000 in transmission towers and $9,000,000 in poles and lines to improve service to its customers. Sparks is installing these in numerous cities and towns and recently, cities and towns have been increasing their standards for removal and restoration. As a consequence of this development, Sparks is responsible for dismantling and removing the towers, poles, and lines at the end of their useful lives under each citys and towns removal and restoration requirements. Both the towers and the poles and lines have a 15-year useful life and are carried in its books as Telequipment account. Sparks uses the straight-line method for depreciation with no residual value expected at the end of the useful lives of the assets. Costs to remove and restore the poles and lines do not have a reasonably determinable quoted market price and market comparable numbers are not available as a result. Sparks thus estimates the cost to dismantle and restore property using probability-based estimates even though the poles and line method of transmission has been used for many years. The estimated values are as follows: Estimated Future Costs Probability of Occurrence $250,000 5% $350,000 35% $790,000 40% $985,000 20% The companys estimated cost of capital is 5%.

3] The finance costs on the outstanding liability for the year ended December 31, 2013. [($311,701* x 1.05*) x 0.05*] = $16,364 Interest Expense $16,364 Asset Retirement Obligations $16,364 4] Now assume the company is applying ASPE. The finance costs on the outstanding liability for the year ended December 31, 2012. Accretion Expense $15,585 Asset Retirement Obligations $15,585

* Please explain computations for the answers of the questions 3 and 4. Thank you :)