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A company buys an oil rig for $3300000 on January 1, 2018. The life of the rig is 10 years and the expected cost to
A company buys an oil rig for $3300000 on January 1, 2018. The life of the rig is 10 years and the expected cost to dismantle the rig at the end of 10 years is $595000(present value at 9% is $251340). 9% is an appropriate interest rate for this company. What expense should be recorded for 2018 as a result of these events?
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