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 seven-year useful life. Bridgeport estimates that it will cost $1.2 million to dismantle and remove the platform at the end of its useful life and that the discount rate to use should be 6%. Using (a) factor Table A.2, (b) a financial calculator, or (c) Excel function PV. Ignore production related costs for this question.

Asset Retirement Obligation

$798,072

Prepare any necessary adjusting entries that are associated with the asset retirement obligation and related expenses at

December 31, 2023, assuming that Bridgeport follows IFRS.