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sergiy2304 [10]
1 year ago
14

quizlet calaf’s drillers erects and places into service an off-shore oil platform on january 1, 2021, at a cost of $10,000,000.

calaf is legally required to dismantle and remove the platform at the end of its useful life in 10 years. calaf estimates it will cost $1,000,000 to dismantle and remove the platform at the end of its useful life in 10 years. (the fair value at january 1, 2021, of the dismantle and removal costs is $450,000.) prepare the entry to record the asset retirement obligation.
Business
1 answer:
Nostrana [21]1 year ago
4 0

quizlet calaf’s drillers erects and places into service an off-shore oil platform on january 1, 2021, at a cost of $10,000,000. calaf is legally required to dismantle and remove the platform at the end of its useful life in 10 years. calaf estimates it will cost $1,000,000 to dismantle and remove the platform at the end of its useful life in 10 years. (the fair value at january 1, 2021, of the dismantle and removal costs is $450,000.) prepare the entry to record the asset retirement obligation.

Oil Platform 450,000

Asset Retirement Obligation 450,000

What is  asset retirement obligation?

An asset retirement obligation is a contractual requirement for the retirement of a tangible long-lived asset, the timing of which may depend on the occurrence of a future event outside the control of the entity bearing the obligation.

Therefore,

Oil Platform 450,000

Asset Retirement Obligation 450,000

To learn more about asset retirement obligation from the given link:

brainly.com/question/14298631

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$8,000

Explanation:

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40% of $20,000 is

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8 0
3 years ago
You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stoc
7nadin3 [17]

Answer:

beta of stock B = 1.33

Explanation:

the beta of treasury bills is 0

the beta of stock A = 1.46

the beta of stock B = ?

the portfolio contains equal amounts of each investment and its overall beta is 0.93

0.93 = (0 x 1/3) + (1.46 x 1/3) + (B x 1/3)

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4 0
3 years ago
If The Limited Company relies on hiring a foreign textile manufacturer to produce a
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Contract manufacturing is the outsourcing of some production activities that were formerly done by the producer to a third party. An organization may outsource certain parts for a product.

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3 years ago
Suppose the U.S. yield curve is flat at 3% and the euro yield curve is flat at 5%. The current exchange rate is $1.4 per euro. W
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For year 3

1.4 * ( 1 + 0.03 / 1 + 0.05 )^3 * 2.2 million

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= 2.90733 million  

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