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Gogo Gasoline installed three new underground storage tanks at one of its gas stations on January 1, 2020. The cost of the tanks was $150,000.
Gogo Gasoline installed three new underground storage tanks at one of its gas stations on January 1, 2020. The cost of the tanks was $150,000. The expected life of the tank is 10 years. Under new state laws, the tanks must be removed after 10 years. Cost to remove the three tanks is expected to be $20,000. Gogos borrowing rate is 6%.
What was Gogo Gasolines depreciation expense and accretion expense, respectively, in 2022? (Round your answer to the nearest whole number.)
a. $15,000; $670
b. $16,117; $670
c. $16,117; $710
d. $17,000; $670
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