Martinez Company purchases an oil tanker depot on January 1, 2020, at a cost of $558,500. 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 $69,720 to dismantle the depot and remove the tanks at the end of the depot's useful life. (a) Your answer is correct. 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 $38,931. (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, 2020 Plant Assets Asset Retirement Obligation Debit 558500 38931 Credit 558500 38931