During $2024,$ Nash constructed a small manufacturing facility specifically to manufacture one particular accessory. Nash paid the

construction contractor $$5,279,000$ cash $($which was the total contract price$)$ and placed the facility into service on January $1,2025.$

Because of technological change, Nash 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, Nash remediate the facility so that it can be

used as a community center. Nash estimates the cost of remediation will be $$632,900.$

Nash uses straight$-$line depreciation with $$0$ salvage value for its plant asset and a $12\%$ discount rate for asset retirement obligations.

$($a$)$

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 $0$ for the amounts. List all debit entries before credit entries. Round present value factor calculations to $5$

decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places e$.$g$.5,125.)$

Account Titles and Explanation

Debit

Credit

$($To record payment to contractor$)$

$($To record asset retirement obligation$)$