Silver Linings Ltd$.$ commenced a mining operation in early $20$X$5.$ The company is required by the terms of provincial legislation to remediate the mine site when mining is completed, likely in five years$$ time. Silver Linings Ltd$.$ estimates that this will cost $$3,350,000.$ A reasonable market interest rate is $8\%.($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$Required:

$1.$ Calculate the present value of the decommissioning obligation.

$2.$ Prepare a table that shows the balance of the provision and interest expense over the life of the liability.

$3-$a$.$ Assume that at the end of $20$X$6,$ the company re$-$estimates that the cost of remediation at $$4,100,000.$ Other assumptions are unchanged. Calculate the interest expense for $20$X$6,$ the new present value, and the adjustment to the obligation for the change in estimates.

$3-$b$.$ Prepare a table that shows the balance of the revised provision and interest expense over the life of the liability.

$4.$ Assume that at the end of $20$X$8,$ the company re$-$estimates the cost of remediation at $$3,600,000,$ and the market interest rate is now $7\%.$ Calculate the interest expense for $20$X$8,$ the new present value, and the adjustment to the obligation for the change in estimates.

$5.$ Calculate the balance of the decommissioning obligation at each $31$ December, from $20$X$5$ to $20$X$8.$