Show Attempt History Current Attempt in Progress During 2024, Sheridan constructed a small manufacturing facility specifically to manufacture one particular accessory. Sheridan paid the construction contractor $5,488,000 cash (which was the total contract price) and placed the facility into service on January 1, 2025. Because of technological change, Sheridan anticipates that the manufacturing facility will be useful for no more than 10 years. The local government where the facility is located required that, at the end of the 10-year period, Sheridan remediate the facility so that it can be used as a community center. Sheridan estimates the cost of remediation will be $387,800. Sheridan uses straight-line depreciation with $0 salvage value for its plant asset and a 9% discount rate for asset retirement obligations. (a) Your answer is correct. Prepare the journal entries to record the January 1, 2025, transactions. Use the Plant Assets account for the tanker depot. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places e.g. 5,125.) Account Titles and Explanation Plant Assets Cash (To record payment to contractor) Plant Assets Debit 5488000 163811 Credit 5488000 (b) Your answer is partially correct. Prepare adjusting entries to record depreciation and accretion expense on December 31, 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,125.) Account Titles and Explanation Depreciation Expense Debit Credit Accumulated Depreciation - Plant Assets (To record depreciation) Accretion Expense Asset Retirement Obligation (To record interest) eTextbook and Media 14743 14743