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Artist 52 [7]
3 years ago
13

Sandhill Company purchases an oil tanker depot on January 1, 2020, at a cost of $639,700. Sandhill expects to operate the depot

for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $69,980 to dismantle the depot and remove the tanks at the end of the depot’s useful life.
Prepare the journal entries to record the depot (considered a plant asset) and the asset retirement obligation for the depot on January 1, 2017. Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2017, is $40,070.
Business
1 answer:
babymother [125]3 years ago
8 0

Answer:

Dr Depot $639,700

Cr Cash $639,700

Dr Depot $40,070

Cr Asset retirement obligation $40,070

Explanation:

Sandhill Company Journal entries

Dr Depot $639,700

Cr Cash $639,700

Dr Depot $40,070

Cr Asset retirement obligation $40,070

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adelina 88 [10]

Answer:

Price

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The supply curve is upward sloping. This indicates the law of supply which says, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

8 0
2 years ago
If you were starting a new business, describe at least three departments to the company that you would need right away. Why are
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7 0
3 years ago
A company's gross profit was $118,350 and its net sales were $466,300. its gross margin ratio equals:
ladessa [460]

The gross margin ratio is a percentage resulting from dividing the amount of a company's gross profit by the amount of its net sales. In this case it would be 118,350/466,300 = 25.38%

3 0
2 years ago
A manager may exercise reward power when determining the salary increases for her subordinates.
Goshia [24]
The manager can exercise the power of <span>distributive justice. 

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7 0
3 years ago
Royal Dutch Shell(RDS) acquires ethanol fuel from Brazilian Cosan energy company. The Ethanol costs 500 million Brazilian Real(B
Fudgin [204]

Answer:

The answer is 5000 future contracts

Explanation:

Solution

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