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Question: buffalo company purchases an 1 tanker depot on january2017 at...

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Buffalo Company purchases an 1 tanker depot on January·2017, at a cost o $607 60 . Bu ao expects to operate the depot or o years at which time it tanks. It is estimated that it will cost $71,100 to dismantle the depot and remove the tanks at the end of the depots uscful life. legal required tod mante e depot and move th under round storage Prepare the oumal entries to record the depot considered a plant asset and the asset retirement obligation for the depot on January 1, 2017 Based on an effective interest rate of 6% the present value of the asset retirement obligation on )anuary 1 2017, is $39,702. Ti no entry is required select No「ntry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit anuary 1, 2017 To record the depot) January 1, 2017 (To record the asset retirement obligaion) LIST OF ACCOUNTS LTNK TO TEXTat December 3 places, e.g. 5,275. I no entry is required, select No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do ot indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2017 (To record depreciation for the depot) December 31, 2017 (To record depreciation on asset retirement obligation) December 31, 2017 To record interest on asset retirement obligation)On December 31, 2026, Buffalo pays a demolition firrm to dismantle the depot and remove the tarks at a price of $76,570. Prepare the journal entry for the settlement of the asset retirement obligation. (Round answers to 0 decimal places, e.g. 5,275. I no entry is required, select No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2026

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