Crane Gas Co. purchases a gas station and convenience store on January 1, 2017, at a cost of $753,000. Crane expects to operate the store and gas station for 20 years. The company is legally required to remove the underground gas storage tanks from the facility at the end of its useful life. Crane estimates that it will cost $103,000 to remove the tanks at the end of the facility's useful life. (a) Your answer is correct. Prepare the journal entries to record the purchase of the gas station/convenience store, as well as the asset retirement obligation for the gas station/convenience store on January 1, 2017. Based on an effective-interest rate of 8%, the present value of the asset retirement obligation on January 1, 2017, is $22,142. (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.) manually.) Account Titles and Explanation Debit Credit Plant Assets 753,000 Cash 753,000 (To record the depot) Plant Assets 22,142 Asset Retirement Obligation 22,142 (To record the asset retirement obligation) Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2017. Crane uses straight-line depreciation; the estimated salvage value for the facility is zero. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record depreciation for the depot) (To record depreciation on asset retirement obligation)