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A company bought an oil rig for $10,000,000 on January 1, 2018. The life of the rig is 5 years and the expected cost to
A company bought an oil rig for $10,000,000 on January 1, 2018. The life of the rig is 5 years and the expected cost to dismantle the rig at the end of 5 years is $1,000,000. An interest rate of 3% would be appropriate for this company for any necessary present value calculations. What amount will the company record as accretion expense for 2018?
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