Question: Marathon Inc. estimates that it will be required to spend approximately $120,000 to remove an underground storage tank in 10 years that was constructed during

Marathon Inc. estimates that it will be required to spend approximately $120,000 to remove an underground storage tank in 10 years that was constructed during the current year for $900,000. The present value of this obligation based on the companys discount rate of 8% is $55,583. Record the entry (if any) during the current year related to the expected removal of the storage tank in 10 years. Marathon Inc. estimates that it will be required to spend approximately $120,000

Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero)

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