Buckner Chemical Products reported the following information on its latest balance sheet dated December 31 of the current year. The relevant t- accounts follow.

On January 1 of the following year, Buckner sold the plant asset for $ 9,000 and incurred $ 6,200 in disposal costs. Prepare the journal entries required to record the disposal of the asset and the settlement of the asset retirement obligation.

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Plant Asset 12,000 3,000 15,000 Accumulated Depreciation - Plant Asset Cost 4,500 4,500 ARO Asset Retirement Obligation 3,000 900 3.900 Beginning Accretion