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MYK Industries Limited purchased a strip. mine for cash on April $1,2023$ at a cost of $$5,243,000.$ MYK expects to operate the mine for $10$ years, at which it is legally required to restore the surrounding area to its original state. It is estimated that it will cost $$458,000$ to do this at the end of the mine's useful life. The company's year$-$end is December $31,$ and MYK follows ASPE.

Prepare the journal entry to record the purchase of the mine and to record the asset retirement obligation for the mine on April $1,2023.$ Based on the effective interest rate of $5\%,$ the present value of the asset retirement obligation $($i$.$e$.,$ its fair value$)$ on the date of acquisition is $$281,172.($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.$)$

Date

Account Titles and Explanation

Debit

Credit

Apr. $1,$

$2023$

$(2)$

$$

$$

$$

$$

$$

$$

$$

Question Part Score

$-13$

Prepare any journal entries required for the mine $($straight$-$line depreciation$)$ and the asset retirement obligation at December $31,2023.$ The estimated residual value of the mine is zero. $($Round answers to $0$ decimal places, eg$.5,275.$ 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 O for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit