Transmission Recycling Inc. (TRI) was granted a 16 year zero cost lease of land by the Ontario government in Pembroke, ON, on which to build a transmission recycling plant. Operations began on January 1, 2022. TRI has a December 31 year end, and uses IFRS. The cost of the plant was $14 million. After 16 years, (ie: January 1, 2038) the government requires that TRI dismantle the plant and clean up any residual waste material to restore to the initial condition. You are advised that 70% of the estimated future dismantle/clean-up cost was included in the ARO calculation at January 1, 2022 with the other 30% to be incurred over the 16 years of operation and to be recorded at each fiscal year end only. The discount rate is 5%. It is currently undergoing the annual audit, and the new controller needs your assistance to respond to the auditors re its ARO as the information available to him is incomplete. The data available shows the additional information on ARO: Balance, ARO, January 1,2022$2,565,416 Depreciation expense for plant and ARO for 2022 (using straight line)