Question 3 TreeBeGone is a logging company that owns rights to a parcel of land in northern Saskatchewan. It is obliged by provincial regulation to remove equipment/infrustructure and plant trees in cleared areas before vacating the land. Equipment and infrastructure set up at the start of operations must be removed January 1, 2009 at the end of the land lease. TreeBeGone estimates set-down costs to be $45,000. Additionally, the company must plant trees in each block cleared. The approximate cost of planting is $1,500 per block (including labour and materials) and will be completed at the end of the land lease contract. TreeBeGone begins logging the land parcel on January 1, 20X0. The company's discount rate is 6% and fiscal year end is December 31. BUS385 Lab 6 (Spring 2022) Required: (1) Prepare a journal entry to record the ARO at January 1, 20X0. (2) What amount will be shown on the Statement of Financial Position for the ARO at December 31, 20X0 if 7 blocks are cleared during the year? (Revise for change in present value and the incremental ARO resulting from blocks cleared during the year). (3) What amount will be shown on the Statement of Financial Position for the ARO at December 31, 20X1 if 12 blocks are cleared during the year?