Current Attempt in Progress

Swifty Limited purchased an oil tanker depot on July $2,2023,$ at a cost of $$516,000$ and explycts to operate the depot for $10$ years. After the $10$ years, Swifty is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $$64,500$ to do this at the end of the depot's useful life. Swifty follows ASPE.

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$($a$1)$

Your answer is correct.

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$.1\mathrm{.}25124$ and final answer to $0$ decimal places, e$.$g$.5,275.)$

Prepare any journal entries required for the depot and the asset retirement obligation at December $31,2023.$ Swifty uses straight$-$line depreciation. The estimated residual value of the depot is zero. $($Round answys to $0$ decimal places, e$.$g$.5,275.$ Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

$($To record depreciation expense$)$

Asset Retirement Obligation