Please solve $($b$)$

On January $1,2023,$ Bramble Corporation erected a drilling platform at a cost of $$4,750,200.$ Bramble is legallyfinancial calculator, or $(3)$ Excel function PV in your calculations. $($Round factor values to $5$ decimal places,

e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places, e$.$g$.5,275.$ Credit account titles are

automatically indented when the amount is entered. Do not indent manually. List all debit

entries before credit entries. If no entry is required, select $"$No Entry" for the account titles and

enter $0$ for the amounts.$)$

$($To record the cost of drilling platform$)$

Drilling Platform

Asset Retirement Obligation

$($To recognize the retirement liability$)$

List of Accounts

Attempts: $5$ of $5$ used

$($b$)$

Prepare any journal entries required for the platform and the asset retirement obligation at December $31,2023.$

$($Round answers to $0$ decimal places, e$.$g$.5,275.$ Credit account titles are automatically indented

when the amount is entered. Do not indent manually. List all debit entries before credit entries.

If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

$($To record depreciation expense$)$

required to dismantle and remove the platform at the end of its $6$ year useful life, at an estimated cost of $$826,500.$

Bramble estimates that $70\%$ of the cost of dismantling and removing the platform is caused by acquiring the asset itself,

and that the remaining $30\%$ of the cost is caused by using the platform in production. The present value of the increase

in asset retirement obligation related to the production of oil in $2023$ and $2024$ was $$28,125$ and $$30,375,$

respectively. The estimated residual value of the drilling platform is zero, and Bramble uses straight$-$line depreciation.

Bramble prepares financial statements in accordance with IFRS.

Click here to view the factor table.

$($a$)$

Your answer is partially correct.

Prepare the journal entries to record the acquisition of the drilling platform and the asset retirement obligation for

the platform on January $1,2023.$ An appropriate interest or discount rate is $8\%.$ Use $(1)$ factor Table A$\mathrm{.}2,(2)$ a

financial calculator, or $(3)$ Excel function PV in your calculations. $($Round factor values to $5$ decimal places,

e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places, e$.$g$.5\mathrm{.}275.$ Credit account titles are

automatically indented when the amount is entered. Do not indent manually. List all debit

entries before credit entries. If no entry is required, select $"$No Entry" for the account titles and

enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

Drilling Platform

$4750200$

$($To record the cost of drilling platform$)$

Drilling Platform

Asset Retirement Obligation

$($To recognize the retirement liability$)$

eTextbook and Media

List of Accounts

Asset Retirement Obligation

$1$

$1$