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attashe74 [19]
3 years ago
9

Calaf’s Drillers erects and places into service an off-shore oil platform on January 1, 2018, 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, 2018, of the dismantle and removal costs is $450,000.) Prepare the entry to record the asset retirement obligation. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Business
1 answer:
GenaCL600 [577]3 years ago
5 0

Answer:

oil plataform     450,000 debit

  ARO liability oil Plataform      450,000 credit

Explanation:

We will recognize the ARO at fair value, and then recongize an interest expense each year to make his balance equal to 1,000,000

The ARO will be capitalized into the oil plataform long-term assets

and depreciate over the past of time.

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Which activity is a good practice when selling online media?
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Answer:

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3 years ago
The marketing department, finance department, human resources department, and information systems department all operate at the
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The marketing department, finance department, human resources

department all operate at the functional level of an organization.

<h3>What is Functional level?</h3>

This level determines the daily operations of the various departments in

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4 0
2 years ago
Swifty Corporation incurs the following costs to produce 9900 units of a subcomponent:
MrMuchimi

Answer:

The net income will increase by $6,712 if the subcomponent is purchased.

Explanation:

Giving the following information:

Swifty Corporation incurs the following costs to produce 9900 units of a subcomponent:

Direct materials $8316

Direct labor 11187

Variable overhead 12474

Fixed overhead 16200

Total cost= $48,177

An outside supplier has offered to sell Swifty the subcomponent for $2.85 a unit.

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We need to calculate the total cost of buying the subcomponent:

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