Bridgeport Corp. erected and placed into service an offshore oil platform on January $1,2023,$ at a cost of $$12$ million. Bridgeport is

legally required to dismantle and remove the platform at the end of its $8$ year useful life. Bridgeport estimates that it will cost $$1\mathrm{.}2$

million to dismantle and remove the platform at the end of its useful life and that the discount rate to use should be $7\%.$ Assume that

the increase in the asset retirement obligation in $2023$ related to the production of oil in $2023$ was $$67,639.$

$($a$)$

Your answer is partially correct.

Prepare any necessary entry to record the increase in the asset retirement obligation at December $31,2023,$ assuming that

Bridgeport follows IFRS. $($Credit account titles are automatically indented when the amount is entered. Do not indent

manually. List debit entry before credit entry. If no entry is required, select $"$No Entry" for the account titles and

enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit