On January 1, Pelican Utilities Company acquired a power plant at a total cost of $23,595,000 and paid cash. The estimated cost to dismantle the plant and restore the property at the end of the plant's 15-year life is $4,851,000 Pelican's cost of capital is 2%. Pelican will depreciate the asset over its useful life using the straight-line method. The asset has no residual value Asset Retirement Obligation (Click the icon to view the Future Value of $1 table) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) Read the requirements 72,087 (Click the icon to view the Present Value of $1 table) (Click the icon to view the Present Value of an Ordinary Annuity table) (Click the icon to view the Present Value of an Annuity Due table) Requirement c. Prepare the journal entries required to record the disposal of the asset and the settlement of the asset retirement obligation at the end of the fifth year after acquisition. Pelican sold the asset for $16,003,000 and the costs of dismantling the plant and restoring the property totaled $5,440,000 (Record debits first, then credits. Exclude explanations from any journal entries. Round intermediary computations and your final answers to the nearest whole dollar.) Begin by journalizing the disposal of the asset at the end of the fifth year after acquisition. Account Accumulated Depreciation - Building Loss on Disposal of Building Cash Building December 31, Year of Disposal 16,003,000 27,199,364 Choose from any list or enter any number in the input fields and then click Check Answer.