Question: Current Attempt in Progress Carla Vista's Corner Store is adding gasoline pumps with underground tanks to store the fuel. The tanks have an estimated

Current Attempt in Progress Carla Vista's Corner Store is adding gasoline pumps

Current Attempt in Progress Carla Vista's Corner Store is adding gasoline pumps with underground tanks to store the fuel. The tanks have an estimated life of 30 years. Carla Vista's estimates that the cost to remove the tanks is $1155000. Based on an 12% discount rate, the fair value of the ARO is estimated to be $38552. What amount would be recorded as accretion expense and depreciation expense, respectively, for the ARO in the first year?

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