1. A Company buys an oil rig for $2,000,000 on January 1, 2014. The life of the rig 1O years and the expected cost to dismantle the rig at the end of lo years is $400,000 (present value at 10% is $154,220). 10% is an appropriate interest rate for this company. What total expense should be recorded for 2014 as a result of these events? 2. Sawyer Company self-insures its property for fire and storm damage. If the company were to obtain insurance on the property, it would cost them $1,500,000 per year. The company estimates that on average it will incur losses of $1,200,000 per year. During 2014, $S25,000 worth of losses were sustained. How much total expense and/or toss should be recognize by Sawyer Company for 2014? 1. A Company buys an oil rig for $2,000,000 on January 1, 2014. The life of the rig 1O years and the expected cost to dismantle the rig at the end of lo years is $400,000 (present value at 10% is $154,220). 10% is an appropriate interest rate for this company. What total expense should be recorded for 2014 as a result of these events? 2. Sawyer Company self-insures its property for fire and storm damage. If the company were to obtain insurance on the property, it would cost them $1,500,000 per year. The company estimates that on average it will incur losses of $1,200,000 per year. During 2014, $S25,000 worth of losses were sustained. How much total expense and/or toss should be recognize by Sawyer Company for 2014