Bramble Company purchases an oil tanker depot on January 1, 2020, at a cost of $615,400. Bramble expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $69,510to dismantle the depot and remove the tanks at the end of the depot's useful life. Your answer is partially correct. Prepare the journal entries to record the depot and the asset retirement obligation for the depot on January 1, 2020. Based on an effective interest rate of6%, the present value of the asset retirement obligation on January 1, 2020, is $38,814. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2020 Depreciation Expense 615,400 Cash Depreciation Expense 615,400 (To record the depot) January 1, 2020 69,510 Asset Retirement Obligation 69,510 (To record the asset retirement obligation) e Textbook and Media List of Accounts X Your answer is incorrect. Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2020. Bramble uses straight-line depreciation; the estimated salvage value for the depot is zero. (Round answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record depreciation for the depot) December 31, 2020 (To record depreciation on asset retirement obligation) December 31, 2020 II DI IO (To record interest on asset retirement obligation) e Textbook and Media List of Accounts x Your answer is incorrect. On December 31, 2029, Bramble pays a demolition firm to dismantle the depot and remove the tanks at a price of $78,720. Prepare the journal entry for the settlement of the asset retirement obligation. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2029 e Textbook and Media List of Accounts