Question $2$ of $11$

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Flounder's Steelers Inc. $($FSI$)$ is a steel manufacturing company located in Ontario. On November $1,2021,$ FSI acquired land on which it constructed a facility for steel manufacturing purposes. Since its manufacturing process produces excessive waste, the government of Ontario has imposed a requirement for FSI to clean up property. As part of its agreement with the province of Ontario, FSI is allowed to operate on this site for only $15$ years after which time FSI estimates it will need to incur $$2,300,000$ to clean up the site. Flounder went ahead with the construction of the building and recognized the asset retirement obligation at that time.

The company's discount rate is $5\%$ and FSI reports under IFRS with a December $31$ year$-$end.

$($a$)$

What adjusting journal entry should FSI have made to initially recognize the ARO under IFRS? $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided, e$.$g$.0\mathrm{.}52750$ and round final answer to $0$ decimal places, e$.$g$.5,275.$ Credit account