Smithson Mining operates a silver mine in Nevada. Acquisition, exploration, and development costs totaled $$6\mathrm{.}3$ million. After the silver is extracted in approximately five years, Smithson is obligated to restore the land to its original condition, including constructing a wildlife preserve. The company$$s controller has provided the following three cash flow possibilities for the restoration costs: $(1)$ $$570,000,20\%$ probability; $(2)$ $$620,000,50\%$ probability; and $(3)$ $$720,000,30\%$ probability. The company$$s credit$-$adjusted, risk$-$free rate of interest is $7\%.$

What is the book value of the asset retirement liability at the end of one year?

Assuming that the actual restoration costs incurred after five years are $$666,000,$ what amount of gain or loss will Smithson recognize on retirement of the liability? Smithson Mining operates a silver mine in Nevada. Acquisition, exploration, and development costs totaled $\backslash (\backslash$$ $6\mathrm{.}3\backslash )$ million. After the silver is extracted in approximately five years, Smithson is obligated to restore the land to its original condition, including constructing a wildlife preserve. The company's controller has provided the following three cash flow possibilities for the restoration costs: $(1)\backslash$$$570,000,20\backslash \%$ probability; $(2)\backslash$$$620,000,50\backslash \%$ probability; and $(3)\backslash$$$720,000,30\backslash \%$ probability. The company's credit$-$adjusted, risk$-$free rate of interest is $\backslash (7\backslash \%\backslash ).$

What is the book value of the asset retirement liability at the end of one year?

Assuming that the actual restoration costs incurred after five years are $\backslash$$$666,000,$ what amount of gain or loss will Smithson recognize on retirement of the liability?

Note: Use appropriate factor$($s$)$ from the tables provided. Do not round intermediate calculations. Enter your answers in dollars not in millions of dollars. $($FV of $\backslash$$$1,$ PV of $\backslash$$$1,$ FVA of $\backslash$$$1,$ PVA of $\backslash$$$1,$ FVAD of $\backslash$$$1$ and PVAD of $\backslash$$$1)$

Answer is complete but not entirely correct.