XYZ Inc set up and started a mining operation on April 1 at a cost of $10,698,300. The company is legally required to dismantle and remove the operation at the end of its nine-year useful life. The company estimates that it will cost $958,900 to dismantle and remove the operation at the end of its useful life and that the discount rate to use should be 7.00%. Assume that the discount rate results in a present-value factor of 0.54393 at the time of setup and start. (Assume that none of the asset retirement cost relates to production.) How much straight-line depreciation expense will be recorded for the asset retirement obligation in the first fiscal year? The company has a December 31 fiscal year end and follows ASPE. O a. $40,205 O b. $43,465 O c. $41,292 O d. $42,378 O e. $39,119 XYZ Inc set up and started a mining operation on April 1 at a cost of $10,698,300. The company is legally required to dismantle and remove the operation at the end of its nine-year useful life. The company estimates that it will cost $958,900 to dismantle and remove the operation at the end of its useful life and that the discount rate to use should be 7.00%. Assume that the discount rate results in a present-value factor of 0.54393 at the time of setup and start. (Assume that none of the asset retirement cost relates to production.) How much straight-line depreciation expense will be recorded for the asset retirement obligation in the first fiscal year? The company has a December 31 fiscal year end and follows ASPE. O a. $40,205 O b. $43,465 O c. $41,292 O d. $42,378 O e. $39,119