{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T13:03:53-04:00", "answer_date": "2024-05-26 13:03:53", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1740421", "url": "\/study-help\/questions\/martinez-company-purchases-an-oil-tanker-depot-on-january-1-1740421", "question_creation_date_js": "2024-05-26T13:03:53-04:00", "question_creation_date": "May 26, 2024 01:03 PM", "meta_title": "[Solved] Martinez Company purchases an oil tanker | SolutionInn", "meta_description": "Answer of - Martinez Company purchases an oil tanker depot on January 1, 2020, at a cost of $558,500. Martinez expects to operate | SolutionInn", "meta_keywords": "martinez,company,purchases,oil,tanker,depot,january,1,2020,cost,$558,500,expects", "question_title_h1": " 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", "question_title": " Martinez Company purchases an oil tanker depot on January 1, 2020,", "question_title_for_js_snippet": "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", "question_description": "\"image\"image", "transcribed_text": "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", "related_book": { "title": "Intermediate Accounting", "isbn": "324300980, 978-0324300987", "edition": "10th Edition", "authors": "Loren A Nikolai, D. Bazley and Jefferson P. Jones", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/120.jpg", "uri": "\/textbooks\/intermediate-accounting-10th-edition-120", "see_more_uri": "" }, "free_related_book": { "isbn": "1531648053", "uri": "\/textbooks\/images-of-rail-middletown-and-unionville-railroad-1st-edition-9781531648053-112453", "name": "Images Of Rail Middletown And Unionville Railroad", "edition": "1st Edition" }, "question_posted": "2024-05-26 13:03:53", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/the-condensed-balance-sheet-and-income-statement-data-for-cardinal", "description": "The condensed balance sheet and income statement data for Cardinal Corporation are presented below. Additional information: 1. The market price of Cardinal common stock was $5.00, $3.50, and $2.30...", "stars": 3 }, { "url": "\/the-following-trial-balances-are-for-the-governmental-funds-of", "description": "The following trial balances are for the governmental funds of the City of Copeland prepared from the current accounting records: Special Revenue Fund Based on the information presented for each of...", "stars": 3 }, { "url": "\/study-help\/introduction-e-business-management-\/describe-why-most-countries-can-be-seen-as-having-a-1790222", "description": "Describe why most countries can be seen as having a mixed economy.", "stars": 3 }, { "url": "\/study-help\/introduction-to-probability-statistics\/a-bowl-contains-a-blue-and-b-yellow-chips-from-1983449", "description": "A bowl contains a blue and b yellow chips. From the bowl, we select successively and without replacement, until the nth blue chip is selected. Let X be the number of chips selected until this...", "stars": 3 }, { "url": "\/in-its-2005-annual-report-td-bank-financial-group-td", "description": "In its 2005 annual report, TD Bank Financial Group (TD) reported economic profit of $ 1,062 million. Its calculation of economic profit is summarized as follows (millions of dollars): Average common...", "stars": 3 }, { "url": "\/study-help\/questions\/lab-10-write-a-program-that-prompts-the-user-to-9866393", "description": "Lab 10: Write a program that prompts the user to read two integers and display the sum. Your program should handle the InputMismatchException, which is already defined in java, and will be thrown...", "stars": 3 }, { "url": "\/study-help\/introduction-to-computing-and-programming-in-pytho\/now-trace-this-series-of-who-built-on-whos-work-854216", "description": "Now trace this series of who built on whos work. Who invented the laser printer? One of the winners of the ACM Turing Award (the closest that computer science has to a Nobel Prize) invented a...", "stars": 3 }, { "url": "\/study-help\/questions\/letter-of-redetermination-2259392", "description": "letter of redetermination", "stars": 3 }, { "url": "\/study-help\/questions\/mgt726-emerging-managerial-practices-wk-5-summative-assessment-transitioning-3548474", "description": "MGT\/726: Emerging Managerial Practices WK 5 - Summative Assessment: Transitioning to a Virtual Environment [due Mon] Exam Content Details & Information Imagine that you have been asked ta make a...", "stars": 3 }, { "url": "\/study-help\/questions\/reliability-is-a-probability-explain-the-numerical-value-used-to-1005502", "description": "Reliability is a probability. Explain the numerical value used to determine the reliability that a manufactured good, piece of equipment, or system performs as intend. How does it work?", "stars": 3 }, { "url": "\/study-help\/questions\/help-save-exit-submit-check-my-work-e77-algo-1232270", "description": "Help Save & Exit Submit Check my work E7-7 (Algo) Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3] Oahu Kiki tracks the number...", "stars": 3 }, { "url": "\/study-help\/questions\/128-a-manufacturer-can-automate-a-certain-process-by-replacing-5562749", "description": "1.2.8 A manufacturer can automate a certain process by replacing 20 employees with a machine. The employees each earn 24,000 per year, with payments on the last day of each month, with no sala- ry...", "stars": 3 }, { "url": "\/study-help\/questions\/how-can-you-obtain-the-following-competencies-through-rtm-hospitality-1004929", "description": "how can you obtain the following competencies through RTM (Hospitality, tourism, recreation management)work experiences and courses? Please explain each of them. 1) Community Knowledge 2)...", "stars": 3 }, { "url": "\/study-help\/questions\/use-the-following-information-on-states-of-the-economy-and-8412322", "description": "Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Assume that all three states are equally likely. (Do not round intermediate...", "stars": 3 }, { "url": "\/critical-reading-sat-scores-are-distributed-as-n500-100-a-find", "description": "Critical reading SAT scores are distributed as N(500, 100). a. Find the SAT score at the 75th percentile. b. Find the SAT score at the 25th percentile. c. Find the interquartile range for SAT scores....", "stars": 3 }, { "url": "\/study-help\/principles-of-marketing\/when-there-is-disagreement-among-members-at-the-same-level-1679143", "description": "When there is disagreement among members at the same level of marketing channels, such as when Best Buy and Lowes engage in a price war on Maytag appliances, _____ channel conflict can occur. a....", "stars": 3 }, { "url": "\/study-help\/managing-human-resources\/advance-planning-of-an-overseas-business-trip-is-from-one-1679149", "description": "Advance planning of an overseas business trip is, from one perspective, the most important stage of the visit. It allows the business person to acquire important information about the country to be...", "stars": 3 }, { "url": "\/study-help\/principles-of-marketing\/what-challenges-did-zaras-focus-on-supply-chain-efficiency-create-1679146", "description": "What challenges did Zaras focus on supply chain efficiency create? Are all such systems destined to suffer similar growing pains? Zara Delivers Fast Fashion26 In the fast fashion retail business...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/on-january-1-2020-stellar-company-purchased-12-bonds-having-1740420", "next": "\/study-help\/questions\/which-of-the-following-is-an-example-of-a-stepfixed-1740422" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": " Martinez Company purchases an oil tanker depot on January 1, 2020,", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/martinez-company-purchases-an-oil-tanker-depot-on-january-1-1740421" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }: "1" } }