On January 1, 20X1, a company estimates its closure costs in 3 years for an oil deposit to be $610,000, which has a $526,942 present value (with a 5% rate implied). Assume any closure cost depreciation is done on a straight-line basis. What journal entry should be recorded for the interest accrual at December 31, 20X1? (Ch13)

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	Dr. Interest expense $26,347; Cr. Asset retirement obligation $26,347
	Dr. Interest expense $30,500; Cr. Oil deposit $30,500
	Dr. Interest expense $30,500; Cr. Asset retirement obligation $30,500
	Dr. Interest expense $26,347; Cr. Oil deposit $26,347