Sunshine Ltd purchased a power generating plant on 1 January 2017 at a cost of $45 million which is paid on 1 January 2017. Sunshine Ltd is legally required to dismantle and remove the platform at the end of its remaining useful life, estimated to be five years. Sunshine Ltd estimates that dismantling and removal will cost $3 million. Assume that interest rate is 8%.

Required:

Show the journal entries on 1 January 2017, 31 December 2017 and 31 December 2018.