Skysong Department Store determines it will cost $98,000 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Skysong estimates the fair value of the obligation at December 31, 2025, is $79,000. Prepare the journal entry to record the asset retirement obligation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Land Improvements Cashl Debit Credit

Transcribed Image Text:

Skysong Department Store determines it will cost $98,000 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Skysong estimates the fair value of the obligation at December 31, 2025, is $79,000 Prepare the journal entry to record the asset retirement obligation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Land Improvements Cashl Debit Credit Skysong Department Store determines it will cost $98,000 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Skysong estimates the fair value of the obligation at December 31, 2025, is $79,000 Prepare the journal entry to record the asset retirement obligation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Land Improvements Cashl Debit Credit