Big Cat Exploration erected an oil platform in a remote area of Texas at a cost of

Question:

Big Cat Exploration erected an oil platform in a remote area of Texas at a cost of $ 10 million. Bit Cat is legally required to dismantle and remove the platform at the end of its useful life, which is expected to be 10 years. Big Cat estimates that the cost of dismantling and removing the oil rig will be $ 700,000. Assume that the appropriate is 8%.
Required:
Prepare the journal entry to record the acquisition of the oil platform. Round your answer to the nearest dollar.
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...