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On January 1, 2023, Bramble Corporation erected a drilling platform at a cost of $5,896,800. Bramble is legally required to dismantle and remove the platform at the end of its 6 year useful life, at an estimated cost of $1,026,000. Bramble 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 $34,914 and $37,707, respectively. The estimated residual value of the drilling platform is zero, and Bramble uses straight-line depreciation. Bramble prepares financial statements in accordance with IFRS. Click here to view the factor table. (a) Prepare the journal entries to record the acquisition of the drilling platform and the asset retirement obligation for the platform on January 1, 2023. An appropriate interest or discount rate is 8\%. Use (1) factor Table A.2, (2) a financial calculator, or (3) Excel function PV in your calculations. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Prepare the journal entries to record the acquisition of the drilling platform and the asset retirement obligation for the platform on January 1, 2023. An appropriate interest or discount rate is 8\%. Use (1) factor Table A.2, (2) a financial calculator, or (3) Excel function PV in your calculations. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Appendix A Time Value of Money Tables Table A.1 ItrJKE VALAIK GI' (rurrunR: VALAR GI A stNxil. stIMt) FVFn,i=(1+i)n PVFADn,i=1+i1(1+i)n11 PVFOAn,i=i1(1+i)v1 FVFOAp1,=i(1+i)n1 PVFn,i=(1+i)n1=(1+i)n On January 1, 2023, Bramble Corporation erected a drilling platform at a cost of $5,896,800. Bramble is legally required to dismantle and remove the platform at the end of its 6 year useful life, at an estimated cost of $1,026,000. Bramble 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 $34,914 and $37,707, respectively. The estimated residual value of the drilling platform is zero, and Bramble uses straight-line depreciation. Bramble prepares financial statements in accordance with IFRS. Click here to view the factor table. (a) Prepare the journal entries to record the acquisition of the drilling platform and the asset retirement obligation for the platform on January 1, 2023. An appropriate interest or discount rate is 8\%. Use (1) factor Table A.2, (2) a financial calculator, or (3) Excel function PV in your calculations. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Prepare the journal entries to record the acquisition of the drilling platform and the asset retirement obligation for the platform on January 1, 2023. An appropriate interest or discount rate is 8\%. Use (1) factor Table A.2, (2) a financial calculator, or (3) Excel function PV in your calculations. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Appendix A Time Value of Money Tables Table A.1 ItrJKE VALAIK GI' (rurrunR: VALAR GI A stNxil. stIMt) FVFn,i=(1+i)n PVFADn,i=1+i1(1+i)n11 PVFOAn,i=i1(1+i)v1 FVFOAp1,=i(1+i)n1 PVFn,i=(1+i)n1=(1+i)n
