Question: Bramble Processes is involved with innovative approaches to finding energy reserves. Bramble recently built a facility to extract natural gas at a cost of $13.2

Bramble Processes is involved with innovative approaches to finding energy reserves.

Bramble Processes is involved with innovative approaches to finding energy reserves. Bramble recently built a facility to extract natural gas at a cost of $13.2 million. However, Bramble is also legally responsible to remove the facility at the end of its useful life of twenty years. This cost is estimated to be $15 million (the present value of which is $6.1 million). What is the journal entry required to record the asset retirement obligation? 0 O No journal entry required. Debit Natural Gas Facility for $6100000 and credit Asset Retirement Obligation for $6100000. Debit Natural Gas Facility for $15000000 and credit Asset Retirement Obligation for $15000000. Debit Natural Gas Facility for $1800000 and credit Asset Retirement Obligation for $1800000

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