Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Peppel Corporation acquired a newly constructed oil platform as well as the licence to extract oilfrom an offshore oilfield in the Gulf of Mexico for 10 years. The cost of the platform and thelicence cost $50m.Under the licence, the company has to remove the platform at the end of 10 years and restore thesea bed to an environmentally satisfactorily condition. The estimated cost of this is $20m. Thepresent value of $1 receivable in 10 years at the appropriate discount rate of 9% for PeppelCorporation is 0.42.
Required:
i) Explain how the offshore oil platform should be treated in the financial statements ofPeppel Corporation for the year ended 31 December 2012.
ii) Show extracts of the following for Peppel Corporation:- statement of financial position as at 31 Dec 2012- statement of comprehensive income for the year ended 31 Dec 2012
iii) Suppose Peppel is not legally required to cleanup the environment at the end of 10 years.How should the offshore oil platform be treated in the financial statements? Showextracts of the financial statements for the year ending 31 Dec 2012.
iv) Assuming that there is no legal requirement to clean up the environment but Peppel isenvironmentally conscious and has always in practice, cleanup the environment in whichit operates and restore it to a satisfactory condition.How should the offshore oil platform be treated in the financial statements?
Describe the advantages of a sole proprietorship and a limited liability corporation
Income statement preparation using contribution and Absorption Costing - Prepare two income statements, one using the contribution approach and one using the absorption approach.
identify the cash flows operating financing investing non cash items.impact of transactions involving operating
The financial statements of Deere & Company
Provide an analysis of the accounting for each fixed asset item using US GAAP and IFRS. Assume the Company uses straight-line depreciation for all its fixed assets and takes a full year of depreciation in the year of the addition.
Are there measures that the government could take to encourage companies to conduct research and development and still control the costs of pharmaceuticals? How is it done in other nations?
Explain why Kevin Pte Ltd should treat this lease as a financial lease, prepare a lease amortization schedule for the entire lease period for the firm.
Evaluate generally accepted accounting principles (GAAP) and what bodies provide authoritative support for GAAP? and What elements comprise the FASB's conceptual framework?
What should be the effects of the determination that the decline was other-than-temporary on Kopp's 2011 net noncurrent assets and net income? Decrease in both net noncurrent assets and net income
In both Japan and United States, a small number of accounting firms audit a great mjority of large public companies. identify advantages of this " market structre" for indendent auditors services.
1. audiofile products ltd. is a retailer that sells sound systems.nbsp the company is planning its cash needs for the
What are the ethical issues involved in this case? What are Saras alternatives?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd