Crane Energy Company is erecting an oil platform off the coast of Texas. Crane is legally required to dismantle and remove the platform at the end of its 10-year useful life. Crane estimates dismantling and removal costs to be $2060000. Based on a 8% discount rate, the fair value of the ARO is estimated to be $954171.

What amount would be recorded as depreciation expense in the first year?

$76334 is incorrect answer.