Lifeline Biofuels built an oil rig at a cost of $4.5 million. 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 oil rig must be dismantled and the land area restored. The expected fair value of the costs of this asset retirement project is $810,000. The present value of these asset retirement costs is $209,000 based on the 7% aftertax discount rate. Under U.S. GAAP, what is the company's accretion expense for the first year?

A. $40,500

B. $10,450

C. $14,630

D. $0