Mining Inc. purchased an asset at a cost of $200,000 on April 1, 2020, for a project that is expected to complete in 10 years (the asset's useful life is estimated to be 10 years). The asset retirement obligation/decommissioning provision (ARO) for this asset is estimated to be $20,000 at the end of the useful life of the project. The relevant discount rate is 6%.

PART A: Assuming Mining Inc. has a December 31 year-end, prepare the journal entries for the first year of this asset's life (ie. April 1, 2020, through March 31, 2021).

PART B: On March 31, 2030, the actual asset retirement costs amount to $24,000. Prepare the journal entry to record the payment of the obligation at that time.