The Plant Corporation, a publicly accountable entity, purchased a metals processing plant on December 31, 2019 at a cost of $8,000,000 cash. The useful life of the plant is 20 years after which it will have to be dismantled with a salvage value of $750,000. The estimated cost of dismantling the plant is $2,000,000. The discount rate is 5%.

Required

a. Write the journal entries to record the above at December 31, 2019 and 2020

b. In 2035, the estimate of the plant dismantling estimate is revised to $1,700,000 due to advances in technology and the discount rate has changed to 6%. Calculate the change in value and record the journal entries required in the year 2035.