On 01-01-19, G purchased a machine for $5,000,000. Installation costs incurred and paid for on 01-01-19 were $15,000. G started using the machine on 01-01-19. G estimates it will use the machine for 5 years. At the end of the 5th year, G will have to dispose of the machine at an estimated cost of $200,000. Assume as of 01-01-19 the interest rate on US Treasury securities was 1.5% and Gs credit standing required a 2.5% risk premium. G uses a straight-line depreciation method and assumes no salvage value.

a. Prepare the entries G made related to machine depreciation and its ARO for the years ended 12-31-20 AND 12-31-21?

b. On 01-01-24, paid a vendor $210,000 to dispose of the machine in accordance with current environmental regulations. Prepare the entry/entries to record the disposal.