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Wisconsin Energy Company determines it has an ARO of $ 1 , 0 0 0 , 0 0 0 related to underground gas tanks for

Wisconsin Energy Company determines it has an ARO of $1,000,000 related to underground gas tanks for a gas station that it purchased on January 4,2025. The tanks have a useful life of 20 years and will be depreciated using the straight-line method. The present value of the ARO using a discount rate of 9% is $178,430.
   
 
1. Complete the following schedule to assist in the accounting for the ARO. (Round to the nearest dollar)
Year ARO Liability Accretion Expense ARO Liability Depreciation
January 1 December 31
2025
2026
2. Record the necessary journal entries for 2025 and 2026.

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