On April 30, 2020, Ranger Oil Corp. purchased an oil tanker depot for $1,200,000. The company expects to operate this depot for eight years, at which time they will be legally required to dismantle the structure and remove the underground storage tanks. Ranger Oil estimates this obligation will cost $200,000. Assuming a 5% discount rate, to the nearest dollar, the amount to be recorded as an asset retirement obligation is:

Question 3 options:

$295,491

$150,000

$135,368

$25,000