Crude Oil Limited purchases an oil tanker depot on July 1, 2011, at a cost of $620,000 and expects to operate the depot for 11 years. After the 11 years, the company is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $77,000 to do this at the end of the depot's useful life. Crude Oil follows aspe

A. Calculate the present value of the assets retirement obligations on thr date kf acquisition base on an effective interest raye of 7%. Prespareb thr journal entries to record the acquisition on the depot and the accrual of the asset retirement obligation fot the depot on july 2,2021

B. Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2021. Crude Oil uses straight-line depreciation. The estimated residual value of the depot is zero.

C. Prepare any joirnal entries required for thr deot assets retirement obligations on december 31 2021. Oil limited uses straight line depreciation. The estimated residual value if the deot is zero.