Recording Asset Retirement Obligation

Martina Company is in the first year of building a storage facility that will contain hazardous building materials. The company is required to remove the storage facility and dispose of its contents at the end of 10 years, which is the useful life of the facility. Martina estimates the dismantling and removal costs to be $168,000 in 10 years. Prepare the journal entry, if any, that is recorded in this first year relating to the restoration costs. The appropriate discount rate is 9%.

• Note: Round your answer to the nearest whole number.
• Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero).

Account Name	Dr.	Cr.
AnswerCashPrepaid InsuranceEquipmentBuildingLandConstruction in ProcessAccumulated DepreciationAccounts PayableProperty Tax PayableAsset Retirement ObligationNote PayableDiscount on Note PayableCommon StockPaid-in Capital in Excess of ParCommon StockContribution RevenueGain on Asset ExchangeAccretion ExpenseDepreciation ExpenseInsurance ExpenseInterest ExpenseRepair ExpenseLoss on Asset ExchangeLoss on Asset ReplacementLoss on Construction of BuildingLoss on DisposalLoss on Settlement of Asset Retirement ObligationN/A	Answer	Answer
AnswerCashPrepaid InsuranceEquipmentBuildingLandConstruction in ProcessAccumulated DepreciationAccounts PayableProperty Tax PayableAsset Retirement ObligationNote PayableDiscount on Note PayableCommon StockPaid-in Capital in Excess of ParCommon StockContribution RevenueGain on Asset ExchangeAccretion ExpenseDepreciation ExpenseInsurance ExpenseInterest ExpenseRepair ExpenseLoss on Asset ExchangeLoss on Asset ReplacementLoss on Construction of BuildingLoss on DisposalN/A	Answer	Answer