Millsap Drillers erects and places into service an off shore oil platform on January 1, 2016, at a cost of $20,000,000 Millsap is legally required to dismantle and remove the platform at the end of its useful life in 10 years Millsap estimates it will cost $2,000,000 to dismantle and remove the platform at the end of its useful life in 10 years (The present fair value at January 1, 2016, of the dismantle and removal costs is $900,000) Millsap will capitalize Blank 1 to the Drilling Platform asset account on January 1, 2016 with a credit to the Asset Retirement Obligation account for the same amount Millsap will depreciate Blank 2 of cost each year related to the ARO (assuming the straight line depreciation method) Millsap Drillers erects and places into service an off shore oil platform on January 1, 2016, at a cost of $20,000,000 Millsap is legally required to dismantle and remove the platform at the end of its useful life in 10 years Millsap estimates it will cost $2,000,000 to dismantle and remove the platform at the end of its useful life in 10 years (The present fair value at January 1, 2016, of the dismantle and removal costs is $900,000) to the Drilling Platform asset account on January 1, 2016 with a credit to the Asset Retirement Obligation account for the Millsap will capitalize same amount Millsap will depreciate of cost each year related to the ARO (assuming the straight ine depreciation method)

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Millsap Drillers erects and places into service an off-shore oil platform on January 1, 2016, at a cost of $20,000,000. Millsap is legally required to

Millsap will capitalize Blank 1 to the Drilling Platform asset account on January 1, 2016 with a credit to the Asset Retirement Obligation account for the same amount.

Millsap will depreciate Blank 2 of cost each year related to the ARO (assuming the straight-line depreciation method).

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Millsap Drillers erects and places into service an off-shore oil platform on January 1, 2016, at a cost of $20,000,000. Millsap is legally required to dismantle and remove the platform at the end of its useful life in 10 years. Millsap estimates it will cost $2,000,000 to dismantle and remove the platform at the end of its useful life in 10 years. (The present "fair" value at January 1, 2016, of the dismantle and removal costs is $900,000). to the Drilling Platform asset account on January 1, 2016 with a credit to the Asset Retirement Obligation account for the Millsap will capitalize same amount. Millsap will depreciate of cost each year related to the ARO (assuming the straight-ine depreciation method)