A company buys an oil rig for $2400000 on January 1, 2018. The life
of the rig is 10 years and the expected cost to dismantle the rig at the end of 10 years is $609000 (present value at 12% is $196080). 12% is an appropriate interest rate for this company. What expense should be recorded for 2018 as a result of these events?
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