detoxification facility for P9,000,000. On January 1, 2021, Camille Company purchased a gas The cost of cleaning up the routine contamination caused by detoxification facility for P9,000,000. che initial location of gas on the property is estimated to be P1,500,000. 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, 2023, additional contamination clean up cost is estimated at P200,000. The appropriate discount rate is 6%. The present value of 1 at 6% is 0.63 for 8 periods and 0.56 for 10 periods. On December 31, 2030, the entity paid a contractor an amount of P2,000,000 for the decommissioning of the detoxification facility. Required: 1. Prepare journal entries in 2021 in relation to the detoxification facility and the decommissioning liability. 2. Prepare journal entries in 2023 in relation to the detoxification facility and decommissioning liability. 3. Prepare journal entries on December 31, 2030 to record the derecognition of the detoxification facility and the settlement of the decommissioning liability.

detoxification facility for P9,000,000. On January 1, 2021, Camille Company purchased a gas The cost of cleaning up the routine contamination caused by detoxification facility for P9,000,000. che initial location of gas on the property is estimated to be P1,500,000. 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, 2023, additional contamination clean up cost is estimated at P200,000. The appropriate discount rate is 6%. The present value of 1 at 6% is 0.63 for 8 periods and 0.56 for 10 periods. On December 31, 2030, the entity paid a contractor an amount of P2,000,000 for the decommissioning of the detoxification facility. Required: 1. Prepare journal entries in 2021 in relation to the detoxification facility and the decommissioning liability. 2. Prepare journal entries in 2023 in relation to the detoxification facility and decommissioning liability. 3. Prepare journal entries on December 31, 2030 to record the derecognition of the detoxification facility and the settlement of the decommissioning liability.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...

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