Recording Asset Retirement Obligations

Marathon Inc. estimates that it will be required to spend approximately $24,000 to remove an underground storage tank in 10 years that was constructed during the current year for $180,000. The present value of this obligation based on the companys discount rate of 8% is $11,117. Record the entry (if any) during the current year related to the expected removal of the storage tank in 10 years. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero).

bligations be required to spend approximately $24,000 to remove an underground constructed during the current year for $180,000. The present value of any's discount rate of 8% is $11,117. Record the entry (if any) during the ed removal of the storage tank in 10 years. 't required for the transaction, select "N/A" as the account names and k (zero)