Swifty Limited purchased an oil tanker depot on July $2,2023,$ at a cost of $$516,000$ and expects to operate the depot for $10$ years.

After the $10$ years, Swifty is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it

will cost $$64,500$ to do this at the end of the depot's useful life. Swifty follows ASPE.

Prepare any journal entries required for the depot and the asset retirement obligation at December $31,2023.$ Swifty uses

straight$-$line depreciation. The estimated residual value of the depot is zero. $($Round answers to $0$ decimal places, e$.$g$.5,275.$ 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 $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Depreciation Expense

Accumulated Depreciation $-$ Oil Tanker Depot

$($To record depreciation expense$)$