Lifeline Biofuels built an oil rig at a cost of $4.5 million that it places into service on the first day of the current year. The company estimates the oil rig will have a useful life of 20 years with no salvage value), after which Federal regulations require that the all rig must be dismantled and the land area restored. The expected fair value of this asset retirement project is $845,000. The present value of these asset retirement costs is $263.000 based on the 6% after-tax discount rate Under U.S. GAAP, what is the company's accretion expense for the first year? A $42,250 B $15.780 OC. $13,150 OD. 50