Sarasota’s Drillers erects and places into service an off-shore oil platform on January 1, 2018, at...
Sarasota’s Drillers erects and places into service an off-shore oil platform on January 1, 2018, at a cost of $10,023,000. Sarasota is legally required to dismantle and remove the platform at the end of its useful life in 10 years. Sarasota estimates it will cost $1,002,300 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 $451,035.) Prepare the entry to record the asset retirement obligation.
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answer
oil platform Dr 451035
To asset retirement obligation 451035
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Sarasota’s Drillers erects and places into service an off-shore oil platform on January 1, 2018, at...
Sage's Drillers erects and places into service an off-shore od platform on January 1 2018, at...
Sage's Drillers erects and places into service an off-shore od platform on January 1 2018, at a cost of % 10,398 000 Sage is ๒gally requred to dism antle and remove the platform, at the end of ts used ite in 10 ars. Sage estimates it will cost $1,039,800 to dismantle and remove the platform at the end of its useful lide in 10 years.(The far value at January 1, 2018, of the dismantle and removel costs is $467,910.) epare...
Bramble Corp. erected and placed into service an offshore oil platform on January 1, 2020, at...
Bramble Corp. erected and placed into service an offshore oil platform on January 1, 2020, at a cost of $8 million. Bramble is legally required to dismantle and remove the platform at the end of its 7-year useful life. Bramble estimates that it will cost $1 million to dismantle and remove the platform at the end of its useful life and that the discount rate to use should be 6%. Use (a) factor Table A.2, (b) a financial calculator, or...
Pina Colada Corp. erected and placed into service an offshore oil platform on January 1, 2020,...
Pina Colada Corp. erected and placed into service an offshore oil platform on January 1, 2020, at a cost of $12 million. Pina Colada is legally required to dismantle and remove the platform at the end of its 7-year useful life. Pina Colada estimates that it will cost $1 million to dismantle and remove the platform at the end of its useful life and that the discount rate to use should be 9%. Use (a) factor Table A.2. (b) a...
What is the correct answer? Question 3 Blue Spruce Corp. erected and placed into service an...
What is the correct answer?
Question 3 Blue Spruce Corp. erected and placed into service an offshore oil platform on January 1, 2020, at a cost of $9 million. Blue Spruce is legally required to dismantle and remove the platform at the end of its 9 year useful life. Blue Spruce estimates that it will cost $0.9 million to dismantle and remove the platform at the end of its useful life and that the discount rate to use should be...
Exercise 13-14 Oil Products Company purchases an oil tanker depot on January 1, 2017, at a...
Exercise 13-14 Oil Products Company purchases an oil tanker depot on January 1, 2017, at a cost of $600,000. Oil Products 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 $75,000 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...
Pina Company purchases an oil tanker depot on January 1, 2020, at a cost of $652,100....
Pina Company purchases an oil tanker depot on January 1, 2020, at a cost of $652,100. Pina 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 $72,300 to dismantle the depot and remove the tanks at the end of the depot’s useful life. (a) Prepare the journal entries to record the depot and the asset retirement obligation...
On January 1, 2020, Blue Spruce Corporation erected a drilling platform at a cost of $4,695,600....
On January 1, 2020, Blue Spruce Corporation erected a drilling platform at a cost of $4,695,600. Blue Spruce is legally required to dismantle and remove the platform at the end of its 6 year useful life, at an estimated cost of $817,000. Blue Spruce estimates that 70% of the cost of dismantling and removing the platform is caused by acquiring the asset itself, and that the remaining 30% of the cost is caused by using the platform in production. The...
Will Rate: E13.14B (LO 3) (Asset Retirement Obligation) Oil Products Company purchases an oil tanker depot...
Will Rate:
E13.14B (LO 3) (Asset Retirement Obligation) Oil Products Company purchases an oil tanker depot on January 1, 2020, at a cost of $2,400,000. Oil Products 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 $300,000 to dismantle the depot and remove the tanks at the end of the depot's useful life. Instructions (a) Prepare the...
Blue Company purchases an oil tanker depot on January 1, 2020, at a cost of $543,400....
Blue Company purchases an oil tanker depot on January 1, 2020,
at a cost of $543,400. Blue 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 $81,690 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 and the asset
retirement obligation for...
On July 1, 2020, Samuel Oil International Ltd. purchased a drilling rig, expecting to operate the...
On July 1, 2020, Samuel Oil International Ltd. purchased a drilling rig, expecting to operate the rig for 3 years. At the end of this 3 year period, Samuel Oil is legally required to dismantle the rig and remediate the land. Samuel Oil follows IFRS. Other information pertaining to this purchase follows: $ 143,307 5% 1,251,861 $ Estimated cost to dismantle the rig and remediate the land in 3 years Estimated discount rate Cost of the drilling rig on July...
Sage's Drillers erects and places into service an off-shore od platform on January 1 2018, at a cost of % 10,398 000 Sage is ๒gally requred to dism antle and remove the platform, at the end of ts used ite in 10 ars. Sage estimates it will cost $1,039,800 to dismantle and remove the platform at the end of its useful lide in 10 years.(The far value at January 1, 2018, of the dismantle and removel costs is $467,910.) epare...
Pina Colada Corp. erected and placed into service an offshore oil platform on January 1, 2020, at a cost of $12 million. Pina Colada is legally required to dismantle and remove the platform at the end of its 7-year useful life. Pina Colada estimates that it will cost $1 million to dismantle and remove the platform at the end of its useful life and that the discount rate to use should be 9%. Use (a) factor Table A.2. (b) a...
What is the correct answer?
Question 3 Blue Spruce Corp. erected and placed into service an offshore oil platform on January 1, 2020, at a cost of $9 million. Blue Spruce is legally required to dismantle and remove the platform at the end of its 9 year useful life. Blue Spruce estimates that it will cost $0.9 million to dismantle and remove the platform at the end of its useful life and that the discount rate to use should be...
On January 1, 2020, Blue Spruce Corporation erected a drilling platform at a cost of $4,695,600. Blue Spruce is legally required to dismantle and remove the platform at the end of its 6 year useful life, at an estimated cost of $817,000. Blue Spruce estimates that 70% of the cost of dismantling and removing the platform is caused by acquiring the asset itself, and that the remaining 30% of the cost is caused by using the platform in production. The...
Will Rate:
E13.14B (LO 3) (Asset Retirement Obligation) Oil Products Company purchases an oil tanker depot on January 1, 2020, at a cost of $2,400,000. Oil Products 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 $300,000 to dismantle the depot and remove the tanks at the end of the depot's useful life. Instructions (a) Prepare the...
Blue Company purchases an oil tanker depot on January 1, 2020,
at a cost of $543,400. Blue 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 $81,690 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 and the asset
retirement obligation for...
On July 1, 2020, Samuel Oil International Ltd. purchased a drilling rig, expecting to operate the rig for 3 years. At the end of this 3 year period, Samuel Oil is legally required to dismantle the rig and remediate the land. Samuel Oil follows IFRS. Other information pertaining to this purchase follows: $ 143,307 5% 1,251,861 $ Estimated cost to dismantle the rig and remediate the land in 3 years Estimated discount rate Cost of the drilling rig on July...
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