Reference no: EM132670088
Question: Problem 1: The present value of 1 at 6% is 0.63 for 8 periods and 0.56 for 10 periods.
On January 1, year 1, Camella Company purchased a gas detoxification facility for 5,850,000. The cost of cleaning up the routine contamination caesed by the initial location of gas on the property is estimated to be 975,000. This cost will be incurred in 10 years when all of the existing stockpile of gas is detoxified and the facility is decommissioned. Additional contamination may occur in succeeding years that the facility is in operation. On January 1, year 3, additional contamination clean up cost is estimated at 130,000. The appropriate discount rate is 6%.
On December 31, year 10, the entity paid a contractor an amount of 1,300,000 for the decommissioning of the detoxification facility.
Required: 1. Prepared journal entries in year 1 in relation to the detoxification facility and decommissioning liability.
2. Prepare journal entries in year 3 in relation to the detoxification facility and decommissioning liability.
3. Prepare journal entries on December 31, year 10 to record the derecognition of the detoxification facility and the settlement of the decommissioning liability.
|
What percent will the price of the bonds increase maturity
: What is the current price of the bonds? Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are trading at well
|
|
Prepare summary of journal entries to recognize provision
: In May 2017, Smile Company became involved in litigation. In December 2017, the court assessed a judgement for 800,000 against Smile. The entity is appealing.
|
|
How compute price of bonds based on semiannual analysis
: Compute the price of the bonds based on semiannual analysis. Heme W Black lard age EMail in linkedln Indeed Thrift Savings Plan Gangle '- Other rewrites Exam 3.
|
|
What are the concepts of ethical threats to independence
: What are the concepts of ethical threats to independence which might have impaired their objectivity, resulting in the audit failure?
|
|
Record the derecognition of the detoxification facility
: On January 1, year 1, Camella Company purchased a gas detoxification facility for 5,850,000. The cost of cleaning up the routine contamination caesed by the.
|
|
Demonstrate oral communication skills
: Demonstrate your oral communication skills by explaining financial decisions and outcomes clearly and using listening and questioning techniques
|
|
What is the holding period? return
: The bond matures in one? year, and at that time you will collect the par value and the interest payment. If you can purchase this bond for ?$9,047?
|
|
Role of global financial centers in global financial system
: What is the role of global financial centers in global financial system and how global financial centers can help in economic growth of developing countries?
|
|
Prepare the two contribution margin income statements
: Prepare the two Contribution Margin Income Statements showing the projected profit (loss) for the hospital including the 20% of managed care inpatient days
|