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On January 1, Crowder Auto Company built a new manufacturing faclity at a total cost of $15,600,000 and paid cash. To dismantle the plant and
On January 1, Crowder Auto Company built a new manufacturing faclity at a total cost of $15,600,000 and paid cash. To dismantle the plant and restore the property at the end of the plant's 20-year life, the estimated cost is $720,000. Crowder will depreciate the asset over its useful life using the straight-line method. The asset has no residual value. Crowder's cost of capital is 2%. Nnw inurnalize the asset retirement obligation related to the plant asset purchased on January 1. Requirement b. Prepare the journal entry to record the first year's depreciation and accretion accrual. (Record debits first, then cry Exclude explanations from any journal entries. Round intermediary calculatiolns and your final answers to the nearest whole dollar Begin by journalizing the first year's depreciation
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