Debited Account is not Depot

Concord Company purchases an oil tanker depot on January 1,2025 , at a cost of $582,100. Concord expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. The company estimates the dismantle and removal will cost $77,790 at the end of the depot's useful life. (a) Your answer is partially correct. Prepare the journal entries to record the depot and asset retirement obligation for the depot on January 1, 2025. Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1,2025 , is $43,437. Use the Plant Assets account for the tanker depot. (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. List all debit entries before credit entries.)