Question
1 On January 1, 2023, Anabelle Corporation makes an investments in a new factory. They provide you with the following information: Cost of the
1 On January 1, 2023, Anabelle Corporation makes an investments in a new factory. They provide you with the following information: Cost of the factory Discount rate Estimated asset retirement obligation Useful life of the factory in years 23600000 5% 26000000 25 Assume the company uses the straight-line mthod of depreciation and applies IFRS. 2 Required: 31) Prepare the journal entries relative to this project for the first two years. 4 152) During 2029, the company changed its estimate of the asset retirement obligation as follows: 16 17 Total amount discount rate 20000000 4.50% 18 Prepare all journal entries relative to this project for the year 2029. 19 20 3) On January 15, 2037 the actual asset retirement costs amount to $18,000,000. Prepare the journal entry to record the realization of the ARC 21
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