Exercise 13-14 (part level submission) monty company purchases an oil tanker depot on january 1, 2017, at a cost of $565,300. monty expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. it is estimated that it will cost $71,990 to dismantle the depot and remove the tanks at the end of the depot’s useful life. collapse question part (a) prepare the journal entries to record the depot (considered a plant asset) and the asset retirement obligation for the depot on january 1, 2017. based on an effective-interest rate of 6%, the present value of the asset retirement obligation on january 1, 2017, is $40,198. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when amount is entered. do not indent manually.)

Trecek corporation incurs research and development costs of $625,000 in 2017, 30 percent of which relate to development activities subsequent to ias 38 criteria having been met that indicate an intangible asset has been created. the newly developed product is brought to market in january 2018 and is expected to generate sales revenue for 10 years. assume that a u. s.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with ifrs. thus, adjustments to convert from u. s. gaap to ifrs must be made. ignore income taxes. required: (a) prepare journal entries for research and development costs for the years ending december 31, 2017, and december 31, 2018, under (1) u. s. gaap and (2) ifrs. (c) prepare the entry(ies) that trecek would make on the december 31, 2017, and december 31, 2018, conversion worksheets to convert u. s. gaap balances to ifrs.