Jan.1, 2014, Wil Oil, Inc. erected an oil platform in the Gulf of Mexico. Wil is legally required to dismantle the platform at the end of its useful life, Useful life estimated at 10 years The cost to build the platform is $10,000,000 Dismantling will cost an estimate of $1,000,000, in 2024. Discount rate estimated at 10 %........? The PV of the ARO is estimated at $385,500 (1m x.3855). Questions 1. Define what is an ARO 2. Explain the need for a company to record the cost of dismantling of the platform today, instead of waiting until the company actually dismantles the platform in 2024.? 3. Record the transaction to reflect the cost of the platform 4. Record the transaction for the cost of the dismantling of the platform in in 2024 5. Record the annual depreciation for the cost of dismantling of the platform 6. Identify the present value and the future value of the cost of the platform 7. Identify the difference between the PV and FV of cost of dismantling of the platform. 8. Explain the relationship between the difference of the PV and FV of the cost of dismantling of the platform and between the Matching principle of Accounting 9. Record the annual interest payment the company has to record for dismantling of the platform