Martinez Company purchases an oil tanker depot on January 1, 2020, at a cost of $582,100. Martinez expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $77,790 to dismantle the depot and remove the tanks at the end of the depot's useful life. (a) Your answer has been saved. See score details after the due date. Prepare the journal entries to record the depot and the asset retirement obligation for the depot on January 1, 2020. Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2020, is $43,437. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation January 1, 2020 Plant Assets Cash (To record the depot) January 1, Plant Assets 2020 Debit 582,100 43,437 Credit 582,100 Asset Retirement Obligation (To record the asset retirement obligation) 43.437 Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2020. Martinez uses straight-line depreciation; the estimated salvage value for the depot is zero. (Round answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date December 31, 2020 Account Titles and Explanation Depreciation Expense Debit 58,210 Credit Accumulated Depreciation-Plant Assets (To record depreciation for the depot) December 31.2020 Depreciation Expense Accumulated Depreciation-Plant Assets (To record depreciation on asset retirement obligation) December 31, 2020 Interest Expense Asset Retirement Obligation (To record interest on asset retirement obligation) 4,343.70 2,606.22 58,210 4,343.70 2,606.22 On December 31, 2029, Martinez pays a demolition firm to dismantle the depot and remove the tanks at a price of $85,620. Prepare the journal entry for the settlement of the asset retirement obligation. (Round answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation December 31.2029 Debit Credit