1. On January 1, 2018, Stefan company purchased a mining site that will have to be restored to certain specifications when the mining production ceases.  The cost of the mining site is 6,000,000 and the restoration cost is expected to be 1,500,000.  It is estimated that the mine will continue in operation for 10 years.  
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3. The appropriate discount rate is 8%.  The present value of 1 at 8% for 10 periods is 0.4632.  On December 31, 2027, the entity contracted with another entity for the restoration of the mining site in accordance with specifications at a cost of 1,350,000.  
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5. How much is the decommissioning liability on January 1, 2018?

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