Al Hamd drillers erects and places into service an off-shore oil platform on January1, 2018, at a Cost of $ 15000000. Al Hamd is legally required to dismantle and remove the platform at the end of its usefull life in 10 years. The company estimates it will cost $ 1500000 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 removing cost is $ 650000). Prepare the entry to record the environmental liability.

Q: On June 30, 2018, Rosetta Granite purchased a machine for $120,000. The estimated useful life of the…

A: Requirement 1:   Compute the depreciation for 2019 under GAAP

Q: On January 1, 2019, Minas Company purchased a mining site in the mountains for the extraction of…

A: Decommission liability means the amount of money that needs to spent on return of a developed site…

Q: Oil Products Company purchases an oil tanker depot on January 1, 2020, at a cost of $600,000. Oil…

A: a. Prepare the journal entries to record the depot and the asset retirement obligation for the depot…

Q: On January 1, 2019, a company completed construction of a nuclear power plant. The total cost of the…

A: As per our protocol we provide solution to the one question or the first three sub-parts but you…

Q: Bassinger Company purchases an oil tanker depot on January 1, 2022, at a cost of $600,000. Bassinger…

A: Journal entry is the book of original entry where first transactions are recorded in the books of…

Q: Pete’s Petroleum, Inc., an SEC registrant with a calendar year-end, is in the business of…

A: 1. Expected Future Expenditure                   Expenditure Probability Amount…

Q: Yernar uses special plastic wrapping equipment in its shipping business. The equipment was purchased…

A: Hey, since there are multiple requirements posted, we will answer first two requirement. If you want…

Q: On March 31, 2021, M. Belotti purchased the right to remove gravel from an old rock quarry. The…

A: Belotti would record depeltion in 2021 = (Cost of the quarry rights /  Estimated salable rock) x…

Q: What is the total carrying value of the manufacturing plant (machine, and equipment) as of December…

A: All the costs incurred to make the asset ready for its intended use shall be capitalized to the…

Q: Rk Co purchased a machine on 1st November 2020 at the cost of $110,000 (inclusive of GST) and…

A: As per Income tax law, depreciation on fixed cost is allowed as deduction from business income.…

Q: Hotroad LLC acquired a new asphalt mixing plant for $500,000 on 1st of January 2016. The…

A: Depreciation is referred to as an amount which is charged by the business on its tangible…

Q: On January 2, 2019, Jillian Company made a test of impairment on one of its buildings carried as…

A: Revaluation surplus is disclosed in the equity section of the company’s statement of financial…

Q: On January 1, 2019, a company completed construction of a nuclear power plant. The total cost of the…

A: Decommissioning liabilities- It means any costs, charges, expenses, liabilities and obligations…

Q: On October 01, 2021, a national government agency purchased and delivered 30 units of Communication…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: 4 On January 1, 2020, an Oil Company erected an oil platform in the Gulf of KSA. Oil Company…

A:

Q: Alcide Mining Company purchased land on February 1, 2020, at a cost of $1,190,000. It estimated that…

A: a. Compute the per unit material cost.

Q: Monty Company purchases an oil tanker depot on January 1, 2020, at a cost of $ 552,300. Monty…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Nash Mining Company purchased land on February 1, 2020, at a cost of $ 914,300. It estimated that a…

A:

Q: Crane Company purchases an oil tanker depot on January 1, 2020, at a cost of $639,700. Crane expects…

A: Machine or fixed assets means the asset which is used by company for many years to come for the…

Q: Calaf’s Drillers erects and places into service an off-shore oil platform on January 1, 2021, at a…

A:

Q: Pier Exports purchased equipment on January 1, 2018, at a cost of $600,000. The company estimates…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets. The…

Q: Calculate the equipment total cost at acquisition. The equipment was sold on December 31, 2023 for…

A: According to IAS 16 ( Property, Plant and Equipment ) any items of fixed asset can be capitalized if…

Q: On January 3, 2012, the July Company spent P196,000 to apply for and obtain a patent on a newly…

A: A patent is a legal right to an invention that is given to a inventor company or entity for securing…

Q: Calaf’s Drillers erects and places into service an off-shore oil platform on January 1, 2018, at a…

A: Contingencies: A business situation that occurs due to uncertain business conditions is termed…

Q: Crane Company purchases an oil tanker depot on January 1, 2020, at a cost of $639,700. Crane expects…

A: Solution:- Preparation of the journal entries to record the depot and the asset retirement…

Q: On January 2, 2018, Lapar Corporation purchased a machine for $50,000. Lapar paid shipping expenses…

A: Various depreciable assets employed by the entity has wear and tear over the working period and…

Q: On April 20, 2020, Wilhamette Incorporated purchased the right to remove timber from a 20,000-acre…

A: Any right purchased which will be used in coming years is a intangible assets which is to be…

Q: Hardflex Inc. bought a building for production of XYZ product on June 30, 2017 costing P15,000,000…

A: First, the carrying value of the asset as on 31st December 2018 needs to be determined. Book value…

Q: On January 2, 2016, Dec Company purchased a patent for a new consumer product for P900,000. patent…

A: Patents are intangible assets (those which do not have physical appearance). Intangible assets are…

Q: Crane Company purchases an oil tanker depot on January 1, 2020, at a cost of $639,700. Crane expects…

A: Loss on Asset retirement obligation's settlement = Amount paid - Estimated Asset retirement…

Q: On January, 2023, Big Company purchased a mineral mine for P2,640,000 with removable ore estimated…

A: Depletion expenses: Depletion expenses is the reduction in the profit due to the use of natural…

Q: Brazen Company purchased a patent on January 1, 2015 for P6,000,000. The original life of the…

A: Intangible assets with a limited useful life must be amortized over the asset's lifetime. Intangible…

Q: Grant Company has acquired a machine and equipment on January 2, 2018. The cost of the machine…

A: Calculation of Depreciation   1. MACHINE Depreciation on Machinery = cost-residual value / useful…

Q: On January 1, 2022, Proton, Inc. purchased a patent giving it exclusive rights to manufacture a new…

A:

Q: ABC Corporation bought an equipment with a total cost of P4,000,000 on Jan. 1, 2016. It was…

A: A  sudden decline in the value of an asset is called an impairment loss.

Q: ABC Inc. purchased a machine on January 1, 2014 for 900,000. This asset will be depreciated for 10…

A: Replacement cost - Replacement cost is the cost incurred to improve the performance of the assets.…

Q: Lifeline Biofuels built an oil rig at a cost of $4.5 million that it places into service on the…

A: Accretion Expense: In accounting, accrual is the periodic acknowledgment of an expenditure that is…

Q: On January 3, 2018, Tracer Incorporated purchased a patent for $450,000 to manufacture a new type of…

A: Amortization is a process that lowers down the book value of the intangible asset.

Q: On July 1, 2020, Boop Corporation purchased a machine at a cost of P300,000. This machine was…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Maris Co. purchased a machine on January 1, 2020, for $2,500,000 for the express purpose of leasing…

A: Annual depreciation=$2,500,0005=$500,000

Q: Headland Mining Company purchased land on February 1, 2020, at a cost of $939,500. It estimated that…

A: Total cost of land = Cost of land+Restoration obligation+Development cost-Resale value of the…

Q: During 2018, Concord Tools Ltd., a Canadian public company, purchased a building site for its…

A: As per GAAP, R&D costs are written-off in the same period irrespective of future benefit.

Q: On April 1, 2019, CanAm Company purchased a copper mine at a cost of $14,000,000.  The mine was…

A: Depletion expense per ton = (Cost - Residual value)/Total estimated tons

Q: Tamarisk Mining Company purchased land on February 1, 2020, at a cost of $945,100. It estimated that…

A: We have the following information: Tamarisk Mining Company purchased land on February 1, 2020, at a…

Q: Tamarisk Mining Company purchased land on February 1, 2020, at a cost of $ 914,300. It estimated…

A: Cost Per Unit: It is calculated by taking into account two elements - variable cost and fixed cost -…

Q: of P8,000,000 with accumulated depreciation of P3,200,000 at December 31, 2020. Annual depreciation…

A: Initially, Plant cost 8,000,000 Less: Accumulated depreciation 31.12.2020 32,000,00 Less:…