Exercise 13-14 Sarasola Company Durchases an oil tanker dapet on January 1, 2020, at a cool of $654,900. Sarasota expecta la aparate the deget for 10 years, which time it in lacully roured to dismantle the depot and remove the underground storage tank. It is estimated that it wil at $69,000 to dismantle the depat and remove the tanks at the end of the cepet's useful life. Prepare the journal entries to recr e t and the terment abigat on for the cepetan lanuary 1, 2020. Henanwei-interest rate of the new of the weet rutrumentimaton only 1, 2020, ,529. If no wtry's required, act "No Entry for the account title and arer for the mount. Credit renunt mutu ally indubad when man in anturad. De matindent m w y ) Date Account Titles and Explanation January 1, 2020 (Tarther det January 1, 2020 PT Threrere these retirement chic Any julen Liral for the sport and the men who 31, 2020 amount. Credit Account that are mutatically indeed was the ra n fur ING. (Round HR dimple 5,275. If antry in in-line turund. Do not indu out in Date Account Titles and Explanation December 31, 2020 To con p in for the Dccember 31, 2020 ULHA (Tirron cleprecationen Asset ret merchant Dccrer 31, 2020 To record interest on see recremert abllyston) On December 31, 2929, Sarasota pays a demoiton firm to dsmante the depot and remove the tarks at a price of $02,170. Prepare the journal entry for the settlement of the asset retirement obligation. (Round answers to the countries and water for the mounta. Crudit account the air sutarticly indented when w urst in watered. Do not indurat manually.) decimal places, e.g. 5,275. If no antry is required, select "No Entry for D ubit Date Account Titles and Explanation December 31, 2029

(Its hard to read so here it is typed out thank you)

"Exercise 13-14 Sarasola Company Durchases an oil tanker dapet on January 1, 2020, at a cool of $654,900. Sarasota expecta la aparate the deget for 10 years, which time it in lacully roured to dismantle the depot and remove the underground storage tank. It is estimated that it wil at $69,000 to dismantle the depat and remove the tanks at the end of the cepet's useful life. Prepare the journal entries to recr e t and the terment abigat on for the cepetan lanuary 1, 2020. Henanwei-interest rate of the new of the weet rutrumentimaton only 1, 2020, ,529. If no wtry's required, act "No Entry for the account title and arer for the mount. Credit renunt mutu ally indubad when man in anturad. De matindent m w y ) Date Account Titles and Explanation January 1, 2020 (Tarther det January 1, 2020 PT Threrere these retirement chic Any julen Liral for the sport and the men who 31, 2020 amount. Credit Account that are mutatically indeed was the ra n fur ING. (Round HR dimple 5,275. If antry in in-line turund. Do not indu out in Date Account Titles and Explanation December 31, 2020 To con p in for the Dccember 31, 2020 ULHA (Tirron cleprecationen Asset ret merchant Dccrer 31, 2020 To record interest on see recremert abllyston) On December 31, 2929, Sarasota pays a demoiton firm to dsmante the depot and remove the tarks at a price of $02,170. Prepare the journal entry for the settlement of the asset retirement obligation. (Round answers to the countries and water for the mounta. Crudit account the air sutarticly indented when w urst in watered. Do not indurat manually.) decimal places, e.g. 5,275. If no antry is required, select "No Entry for D ubit Date Account Titles and Explanation December 31, 2029 Sarasota Company purchases an oil tanker depot on January 1, 2020, at a cost of $654,900. Sarasota 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 $69,000 to dismantle the depot and remove the tanks at the end of the depot's useful life. Your answer is partially correct. Try again. Prepare the journal entries to record the depot and the asset retirendent obligation for the depot on January 1, 2020. Based on an effective interest rate of 6%, the present value of the asset retirement obligation on January 1, 2020, is $38,529. (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.) Debit Credit Date Account Titles and Explanation January 1, 2020 609900 (To record the depot) January 1, 2020 (To record the asset retirement obligation) Your answer is incorrect. Try again. Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2020. Sarasota uses straight-line depreciation, the estimated salvage value for the depot is zero. (Round answers to o decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account tities and enter for the amounts, Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation December 31, 2020 (To record depreciation for the depot) December 31, 2020 (To record the asset retirement obligation) Your answer is incorrect. Try again. Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2020. Sarasota uses straight-line depreciation; the estimated salvage value for the depot is zero. (Round answers to o decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation December 31, 2020 (To record depreciation for the depot) December 31, 2020 (To record depreciation on asset retirement obligation) December 31, 2020 LIN (To record interest on asset retirement obligation) Your answer is incorrect. Try again. On December 31, 2029, Sarasota pays a demolition firm to dismantle the depot and remove the tanks at a price of $82,170. Prepare the journal entry for the settlement of the asset retirement obligation. (Round answers to decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically Indented when amount is entered. Do not Indent manually.) Debit Credit Date Account Titles and Explanation December 31, 2029 Question Attempts: Unlimite