*Exercise 13-14 (Part Level Submission) Monty Company purchases an oil tanker depot on January 1, 2017, at a cost of $572,600. Monty 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. It is estimated that it will cost $71,850 to dismantle the depot and remove the tanks at the end of the depot's useful life Your answer is correct Prepare the journal entries to record the depot (considered a plant asset) and the asset retirement obligation for the depot on January 1, 2017, Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2017, is $40,120. (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 Date January 1, 2017 Plant Asse 7260 7260 as To record the depot) 701201 ) 01201 January 1, 2017 lant Asset sset Retirement Obligation (To record the asset retirement obligation) Attempts: 2 of 15 used Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2017. Monty uses straight-line depreciation; the estimated salvage value for the depot is zero. (Round answers to 0 decimal places, e.g. 5,275. 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 Date Credit December 31, 2017 (To record depreciation for the depot) December 31, 2017 (To record depreciation on asset retirement obligation) December 31, 2017 (To record interest on asset retirement obligation) Attempts: 0 of 15 used