Sheffield Corp. erected and placed into service an offshore oil platform on January 1, 2020, at a cost of $12 million. Sheffield is legally required to dismantle and remove the platform at the end of its 8-year useful life. Sheffield estimates that it will cost $1 million to dismantle and remove the platform at the end of its useful life and that the discount rate to use should be 10%. Using (a) factor Table A.2, (b) a financial calculator, or (c) Excel function PV, prepare the entry to record the asset retirement obligation. Assume that none of the $1 million cost relates to production. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.

Account Titles and Explanation	Debit	Credit
select an account title Interest ExpenseNo EntryDrilling PlatformAccumulated Depreciation Drilling PlatformDepreciation ExpenseAccretion ExpenseCashInventoryAsset Retirement Obligation	enter a debit amount	enter a credit amount
select an account title CashAsset Retirement ObligationInterest ExpenseInventoryAccumulated Depreciation Drilling PlatformAccretion ExpenseDepreciation ExpenseNo EntryDrilling Platform	enter a debit amount	enter a credit amount