Flounder Corp, erected and placed into service an offshore oil platform on January 1, 2023, at a cost of $12 million. Flounder is legally required to dismantle and remove the platform at the end of its 7 year useful life. Flounder estimates that it will cost $1.2 million to dismantle and remove the platform at the end of its useful life and that the discount rate to use should be 8%. Assume that the increase in the asset retirement obligation in 2023 related to the production of oil in 2023 was $59,367.