Question

Question Help L b i restored. The value of the anon 510.5 The company times the rig wil have a le of 20 years with no savage wall or which Federn regions require that the must be diamanted and the land area thesis of this rement pris 900.000. The present of these broncs 200.000 based on the short court Under US GAAP is the capitalized carrying the completion of construction? O A 20.30.000 $10 220 000 OC 510.780,000 110 500.000

Answer 1

Initial capitalized cost = Cost of the asset + Present value of retirement cost of the asset
=  $10500000 + $280000 = $10,780,000

Option C. is correct answer.