Decommission cost

Hi, I have a question regarding this exercise: Clarion from Kaplan kit Property, plant and equipment Included in property, plant and equipment is an item of plant with a cost of $14 million purchased on 1 April 20X4 However, the plant will cause environmental damage which will have to be rectified when it is dismantled at the end of its five year life The present value (discounting at 8%) on 1 April 20X4 of the rectification is $4 million. The environmental provision has been correctly accounted for, however, no finance cost has yet been charged on the provision. No depreciation has yet been charged on plant and equipment which should be charged to cost of sales on a straight?line basis over a five?year life No plant is more than four years old The dismantling cost is not capitalized in PPE. However on a similar MCQ, On 1 July 20X4, Experimenter opened a chemical reprocessing plant. The plant was due to be active for five years until 30 June 20X9, when it would be decommissioned. At 1 July 20X4, the costs of decommissioning the plant were estimated to be $4 million in 5 years’ time Experimenter considers that a discount rate of 12% is appropriate for the calculation of a present value, and the discount factor at 12% for five years is 0.567. What isthe total charge to the statement of profit orlossin respect of the decommissioning for the year ended 30 June 20X5? In this exercise, if you want to arrive at the correct answer you must capitalize the decommissioning cost. Which one is the correct answer and why ? Thank you so much for your help