The ARO is initially set up as in Example 1. The lease and ARO expire normally on January 31, 2033. On the ARO, enter a Term Type of Normal, and a Term Date of January 31, 2033. The journal entries or other reports show a debit to ARC accumulated depreciation and credit to ARC of 6,832.04, debit to ARO liability and credit to ARO expense allowance of 23,394.70. (The last is applied against your actual expenses.)