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B. On 19 January 2015, Nizwa Municipal Corporation opens a land fill, which is to be accounted in its enterprise fund. The engineers of the
B. On 19 January 2015, Nizwa Municipal Corporation opens a land fill, which is to be accounted in its enterprise fund. The engineers of the municipality estimate that the total capacity will be 18 Million Cubic Feet and the site is expected to use for 40 years. The expected closure related cost is OMR 42 Million, During 2015, the Municipality uses 108,000 cubic feet of the land fill. At the yearend it estimates that the total capacity will be 18 Million cubic feet but the closure related costs will be OMR 44 Million. In 2016, the Municipality uses 124,000 cubic feet of the landfill, At the year end, it estimates that closure related costs have increased to OMR 44,860,000 and that landfill capacity decreased to 16,480,000 cubic feet. In 2017, the Municipality uses 146,000 cubic feet of the landfill. At the yearend engineers estimates that the closure related costs have increased to OMR 46,380,000 and the landfill capacity 16,120,000 cubic feet. During the year the Municipality also spends OMR 432,800. During the year Municipality spent OMR 425,000 on closure related costs. Calculate the required addition to the liability and pass journal entry for the year 2015, 2016, and 2017
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