Concord Limited purchased an oil tanker depot on July 2, 2017, at a cost of $520,000 and expects to operate the depot for 10 years. After the 10 years, the company is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $70,000 to do this at the end of the depots useful life. Concord follows ASPE. Collapse question part (a1) Incorrect answer. Your answer is incorrect. Try again. Calculate the present value of the asset retirement obligation (that is, its fair value) on the date of acquisition, based on an effective interest rate of 6%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.) Present Value of the Asset Retirement Obligation $Entry field with incorrect answer 290363 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 2 of 2 used Collapse question part (a2) Correct answer. Your answer is correct. Prepare the journal entries to record the acquisition of the depot and the accrual for the asset retirement obligation for the depot on July 2, 2017. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit July 2, 2017 Entry field with correct answer Entry field with correct answer 520000 Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer 520000 (To record the purchase of oil tanker depot) July 2, 2017 Entry field with correct answer Entry field with correct answer 39087 Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer 39087 (To recognize the asset retirement liability) SHOW ANSWER LINK TO TEXT LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 1 of 2 used Collapse question part (b) Partially correct answer. Your answer is partially correct. Try again. Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2017. Concord uses straight-line depreciation. The estimated residual value of the depot is zero. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017 Entry field with correct answer Entry field with incorrect answer 45000 Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with incorrect answer 45000 (To record depreciation expense) Dec. 31, 2017 Entry field with correct answer Entry field with incorrect answer 251276 Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with incorrect answer 252276 (To record accretion expense) SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 2 of 2 used Collapse question part (c) Partially correct answer. Your answer is partially correct. Try again. Show how all relevant amounts will be reported on Concord Limiteds financial statements at December 31, 2017. (Round answers to 0 decimal places, e.g. 5,250.) Concord Limited Financial Statement (Partial) As at December 31, 2017 Entry field with correct answer Entry field with correct answer $Entry field with incorrect answer 450000 Entry field with correct answer:Entry field with correct answer Entry field with correct answer 27954 $Entry field with incorrect answer 422046 Entry field with correct answer Entry field with correct answer Entry field with incorrect answer 39087 Concord Limited Income Statement (Partial) As at December 31, 2017 Entry field with correct answer Entry field with correct answer $Entry field with correct answer 27954 Entry field with correct answer Entry field with correct answer 1173 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 2 of 2 used Collapse question part (d) Incorrect answer. Your answer is incorrect. Try again. Prepare the schedule to calculate the balance in the asset retirement obligation account for all years from 2017 to 2027, assuming there is no change in the estimated cost of dismantling the depot. (Round answers to 0 decimal places, e.g. 5,275.) Year Begining Carrying Amount Accretion Expense Ending Carrying Amount June 30, 2018 $Entry field with incorrect answer 40260 $Entry field with incorrect answer 2416 $Entry field with incorrect answer 42676 2019 Entry field with incorrect answer 42676 Entry field with incorrect answer 2561 Entry field with incorrect answer 45237 2020 Entry field with incorrect answer 45237 Entry field with incorrect answer 27142 Entry field with incorrect answer 72379 2021 Entry field with incorrect answer 72379 Entry field with incorrect answer 43427 Entry field with incorrect answer 115806 2022 Entry field with incorrect answer 115806 Entry field with incorrect answer 69484 Entry field with incorrect answer 185290 2023 Entry field with incorrect answer 185290 Entry field with incorrect answer 111174 Entry field with incorrect answer 296464 2021 Entry field with incorrect answer 296464 Entry field with incorrect answer 177878 Entry field with incorrect answer 474342 2025 Entry field with incorrect answer 474342 Entry field with incorrect answer 284605 Entry field with incorrect answer 758947 2026 Entry field with incorrect answer 758947 Entry field with incorrect answer 455368 Entry field with incorrect answer now contains modified data 1214315 2027 Entry field with incorrect answer 1214315 Entry field with incorrect answer 728589 Entry field with incorrect answer 1942904 LINK TO TEXT LINK TO TEXT