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A company buys an oil rig for $4100000 on January 1,2021 . The life of...

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Accounting

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A company buys an oil rig for $4100000 on January 1,2021 . The life of the rig is 10 years and the expected cost to dismantle the rig at the end of 10 years is $596000 (present value at 8% is $276070 ). 8% is an appropriate interest rate for this company. What expense should be recorded for 2021 as a result of these events? Depreciation expense of $437607 and interest expense of $22086 Depreciation expense of $375680 Depreciation expense of $328000 and interest expense of $22086 Depreciation expense of $328000 and interest expense of $47680

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