The journal entry to record the depreciation and accretion for the first year. Given information: Cost of oil processing plant is $13,560,000. Plant life given is 10 years. Estimated cost to dismantle the plant is $2,100,000. Company’s cost of capital is 5% Company used straight-line method for calculating depreciation.

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Chapter 13, Problem 13.12BE

To determine

To prepare: The journal entry to record the depreciation and accretion for the first year.

Given information:

Cost of oil processing plant is $13,560,000.

Plant life given is 10 years.

Estimated cost to dismantle the plant is $2,100,000.

Company’s cost of capital is 5%

Company used straight-line method for calculating depreciation.

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