1. On 01-01-18, X purchased a machine for $2,100,000. Installation costs incurred and paid for on 01-01-18 were $60,000. X started using the machine on 01-01-18. X estimates it will use the machine for 6 years. At the end of the 6^th year, X will have to dispose of the machine at an estimated cost of $350,000. Assume as of 01-01-18 the interest rate on US Treasury securities was 1.5% and Xs credit standing required a 2% risk premium. X uses a straight-line depreciation method and assumes no salvage value.
   1. What gross amount should X report on its balance sheet as a fixed asset (machine) as of 12-31-18?
   2. Prepare the entries X made related to machine depreciation and its ARO for the years ended 12-31-19 AND 12-31-20?
   3. What amount should X report on its balance sheet as its ARO as of 12-31-21?
   4. On 01-01-24, paid a vendor $329,000 to dispose of the machine in accordance with current environmental regulations. Prepare the entry/entries to record the disposal.