Chemrite Inc. reported a total asset retirement obligation
of $350,000 in last year’s balance sheet. This year, Chemrite
acquired a new chemical manufacturing facility subject to unconditional
retirement obligations. Two measures of the obligation
are the discounted cash flow estimate of $82,000 and the
undiscounted cash flow estimate of $105,000. Accretion expense
equaled $23,000. What amount should Chemrite report for the
asset retirement obligation in this year’s balance sheet?