At the Beginning of Fiscal 2020, a County Builds a Sewage

Essay

At the beginning of fiscal 2020, a county builds a sewage treatment plant, reported in an enterprise fund. The plant is expected to be in service for 35 years. The county is responsible for the plant's retirement at the end of its life, following all safety and environmental requirements. The estimated present value of the future retirement costs is $7,000,000, to be recognized as expense on a straight-line basis over the plant's estimated life.
Required
Prepare the journal entries to record the sewage treatment plant retirement costs for fiscal 2020.