1. Obtain the relevant authoritative literature on accounting for asset retirement obligations using the FASB Accounting Standards Codification. Explain the basic treatment of asset retirement obligations. What are the specific citations that you would rely on to determine (a) the accounting treatment for an asset retirement obligation (XXX-XX), (b) recognition criteria related to asset retirement obligations (XXX-XX-XXX), (c) the requirement to recognize the fair value of the asset retirement obligations as a liability (XXX-XX-XXX-X), and (d) how to treat the capitalized cost of the asset retirement obligation for the related tangible long-lived asset (XXX-XX-XXX-X).

2. How much accretion expense will the company record in its income statement for the 2018 fiscal year, related to this transaction? What are the specific citations from the FASB Accounting Standards Codification that address (a) the calculation of accretion expense (XXX-XX-XXX-X) and (b) the classification of accretion expense in the income statement (XXX-XX-XXX-X)?

3. Describe to Alice the necessary disclosure requirements for the obligation. What is the specific citation from the FASB Accounting Standards Codification that contains these disclosure requirements (XXX-XX-XXX-X)?