Question: This information is the same as the previous question. Exploration destroys land and must set up an asset retirement obligation. Annual obligation upon retirement 1,000,000

This information is the same as the previous question.

Exploration destroys land and must set up an asset retirement obligation.

Annual obligation upon retirement 1,000,000
Interest rate 5%
Number of payments 5
Years until retirement 30

What is the reduction to pretax income of recording the ARO?

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