Question: Jack's Corner Store is adding gasoline pumps with underground tanks to store the fuel. The tanks have an estimated life of 30 years. Jack estimates

Jack's Corner Store is adding gasoline pumps with underground tanks to store the fuel. The tanks have an estimated life of 30 years. Jack estimates that the cost to remove the tanks is $1,115,000. Based on an 11% discount rate, the fair value of the ARO is estimated to be $48,706. What amount would be recorded as interest expense and depreciation expense, respectively, for the ARO in the first year? $122,650and$37,167$5,358and$37,167$122,650and$1,623$5,358and$1,624

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