Answer:
b. Liability, $9,000,000; expense, $0.
Explanation:
An asset retirement obligation (ARO) refers to an obligation with respect to the acquisition , construction, development, etc. The liability should be recognized the liability at the present value that should be expected to be paid for settling the obligations
Here the $9,000,000 million represents the liability
Also the journal entry is
Asset Dr
To liability
(Being the asset placed is recorded)
There is no expense should be recorded in the income statement
Answer:
Annual depreciation= $77,000
Explanation:
Giving the following information:
Purchase price= $800,000
Salvage value= $30,000
Useful life= 10 year
Under the straight-line method of depreciation, the depreciation expense is constant along the useful life.
We need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (800,000 - 30,000)/10
Annual depreciation= $77,000
Answer:
Multichannel distribution system.
Explanation:
Multichannel distribution system is a method or structure in which a single company sets up two or more sales and marketing channels to reach one or more customer segments
Answer:
351,830,000 Yuan
Explanation:
Investment value = C$ 15.1 billion
Value in Yuan in June 2012 = C$ 15.1 billion x 6.3698 Yuan/C$
Value in Yuan in September 2012 = C$ 15.1 billion x 6.3465 Yuan/C$
The difference in Yuan if Cnooc has purchased Nexen in September instead of June is:
Cnocc saves 351,830,000 Yuan
Answer:
$3,500
Explanation:
Under variable costing method, product costs are calculated on variable manufacturing costs only.
Step 1 : Determine unit Product Cost
Product Cost = Variable Manufacturing Costs
= $ 35
Step 2 : Determine the units in Inventory
Units in Inventory = Opening Stock + Production - Sales
= 0 + 7,210 - 7,110
= 100 units
Step 3 : Determine Inventory value
Inventory value = Units x Cost per unit
= 100 units x $ 35
= $3,500
Conclusion :
the ending inventory of finished goods under variable costing would be: $3,500
