Grouper Limited purchased an oil tanker depot on July 2, 2020, at a cost of $558,000 and expects to operate the depot for 10 years. After the 10 years, the company is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $69,750 to do this at the end of the depot's useful life. Grouper follows ASPE. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Calculate the present value of the asset retirement obligation (that is, its fair value) on the date of acquisition, based on an effective interest rate of 6%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 5,275.) Present Value of the Asset Retirement Obligation eTextbook and Media +A $ Prepare the journal entries to record the acquisition of the depot and the accrual for the asset retirement obligation for the depot on July 2, 2020. Use (1) factor Table A.2, (2) a financial calculator, or (3) Excel function PV in your calculations. (Hint: For a review of present value concepts, see Chapter 3 of Volume 1.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit July 2, 2020 July 2, 2020 (To record purchase of depot) (To record asset retirement obligation) eTextbook and Media > Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2020. Grouper uses straight-line depreciation. The estimated residual value of the depot is zero. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Dec. 31, 2020 (To record depreciation expense) (To record accretion expense) eTextbook and Media Show how all relevant amounts will be reported on Grouper Limited's financial statements at December 31, 2020. (Round answers to O decimal places, e.g. 5,250.) Grouper Limited Balance Sheet (Partial) As at December 31, 2020 > +A Year Begining Carrying Amount June 30, 2021 $ 2022 2023 2024 2025 2026 2027 2028 2029 2030 Accretion Expense +A Ending Carrying Amount $ On June 30, 2030, Grouper pays a demolition firm to dismantle the depot and remove the tanks at a cost of $74,400. Prepare the journal entry for the settlement of the asset retirement obligation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date June 30, 2030 Account Titles and Explanation eTextbook and Media Debit Credit Grouper Limited Balance Sheet (Partial) As at December 31, 2020 +A 5 > $ +A Grouper Limited Income Statement (Partial) For the Year Ended December 31, 2020 >