On January 1, 2023 riverbed corporation corrected a drilling platform at a cost of 5,514,600 riverbed is legally required to dismantle and remove the platform at the end of its six year useful life an estimated cost of 959,000 and $500 riverbed estimates that 70% of the cost of dismantling and removing the platform is caused by acquiring the asset itself and that the remaining 30% of the cost is caused by using the platform in production the present value of the increase in asset retirement obligation related to the production of oil in 2023 and 2024 was 32,651 and 35,263 respectively the estimated residual value of drilling platform is zero and riverbed use a straight line depreciation. Riverbed prepares financial statements in accordance with IFR

1. Prepare the journal entries to record the acquisition of the drilling platform and the asset retirement obligation for the platform on January 1, 2023, in appropriate interest or discount rate 8% use one factor table 8.2 a financial calculator or excel function PV in your calculations.

2. Prepare the following journal entires required for the platform and the asset retirement obligation at December 31,2023.

1. To Record Depreciation Expense
2. To Record interest Expense
3. To Record production of oil inventory