Brief Exercise 13-12 Skysong\'s Drillers erects and places into service an off-s

Question

Brief Exercise 13-12 Skysong's Drillers erects and places into service an off-shore oil platform on January 1, 2018, at a cost of $10,490,000. Skysong is legally required to dismantle and remove the platform at the end of its useful life in 10 years. Skysong estimates it will cost $1,049,000 to dismantle and remove the platform at the end of its useful life in 10 years. (The fair value at January 1, 2018, of the dismantle and removal costs is $472,050.) Prepare the entry to record the asset retirement obligation. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Account titles and explanation Debit Credit Oil Platform $472,050 Asset Retirement Obligation $472,050

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