Blue Energy company determines it has an ARO of $1,220,000 related to underground gas tanks for a gas station that it purchased onJanuary 4, 2025. The tanks have a useful life of 20 years and will be depreciated using the straight-line method. The present value ofthe ARO using a discount rate of 9% is $217,686.(a)Your answer is incorrect.Complete the following schedule to assist in the accounting for the ARO. (Round answers to 0 decimal places, eg. 5,125.)ARO LiabilityJanuary 1ARO LiabilityDecember 31$Accretion ExpenseDepreciation

Name: Blue Energy company determines it has an ARO of $1,220,000 related to
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Description: Blue Energy company determines it has an ARO of $1,220,000 related to underground gas tanks for a gas station that it purchased onJanuary 4, 2025. The tanks have a useful life of 20 years and will be depreciated using the straight-line method. The p

Asset Retirement Obligation (ARO) is a liability associated with the retirement of a long-term…

Business

Accounting

Your answer is incorrect. Complete the following schedule to assist in the accounting for the ARO (Round answers to 0 decimal places, eg. 5,125) ARO Liability January 1 ARO Liability December 31 S Accretion Expense $ Depreciation

Your answer is incorrect. Complete the following schedule to assist in the accounting for the ARO (Round answers to 0 decimal places, eg. 5,125) ARO Liability January 1 ARO Liability December 31 S Accretion Expense $ Depreciation

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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adjusted trail balance is available as well as the required information, please record the closure entry of revenue accounts, as well as record the closure entry of expenssses acounts. Thank you.
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PROBLEM 3 The following information was extracted from the records of Aloha Company on December 31, 2021:Carrying amount Tax baseAccounts receivable P 1,500,000 P 1,750,000Motor vehicle 1,650,000 1,250,000Provision for warranty 120,000 NilDeposits received in advance 150,000 NilThe depreciation rates for accounting and taxation are 15% and 25% respectively. The deposits are taxable when received and warranty costs are deductible when paid. An allowance for doubtful accounts of P250,000 has been raised against accounts receivable for accounting purposes but such accounts are deductible only when written off as uncollectible. Alpha Company showed net income of P8,000,000 in its 2021 income statement. There are no temporary differences at the beginning of the current year. The tax rate is 30%. a. Determine the deferred tax liability on December 31, 2021. b.Determine the deferred tax asset on December 31, 2021. c. Determine the current income tax expense.
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