(Solved): During 2024, Metlock constructed a small manufacturing facility speeifically to manufacture one par ...

During 2024, Metlock constructed a small manufacturing facility speeifically to manufacture one particular accessory. Metiock paid the construction contractor $35,364,000$ cash (which was the total contract price) and placed the facilly into service on January 1 . 2025. Because of technological change. Metlock anticipates that the manufacturing facility wili be useful for no more than 10 years The local government where the facility is located required that, at the end of the 10 year period, Metiock rernediate the facility so that it can be used as a community center. Metiock estimates the cost of remediation will be 5438.200 Metlock uses straight-4ine depreciation with $\$0$ salvage value for its plant asset and a $12\%$ discount rate for asset retirement obligations (a) Your answer is correct. Prepare the journal entries to record the January 1, 2025, transactions. Use the Plant Assets account for the tanker depot. (Credit occount tities are outomatically indented when the amount is entered. Do not indent manualy, If no entry is required, select "Nio Entry" for the occount tities and enter 0 for the amounts. List all debit entries before credit entrles. Round present value foctor calculations to 5 decimol places es. 1.25124 and final answers to 0 decimal ploces es. 5,125. Prepare adjusting entries to record depreciation and accretion expense on December 31, 2025. (Credit ocoount eitles are outomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the acouunt titles and enter $O$ for the amounts. List all debit entries before credit entries Round onswers to 0 dedmol ploces es. 5,125 .