Compute the total cost of the detoxification facility

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Question - Saul Company is experiencing financial difficulty and is negotiating debt restructuring with its creditor to relieve its financial stress. The entity has a P5,000,000 note payable to United Bank.

The bank accepted an equity interest in Saul Company in the form of 200,000 ordinary shares quoted at P20 per share. The par value is P10 per share.

The fair value of the note payable is P4,500,000.

1. Compute the Decommissioning liability on January 1

2. Compute the Interest expense current year.

3. Compute the Total cost of the detoxification facility.

4. Compute the Depreciation for the current year.

Reference no: EM132952940

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