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MarigoldProcesses is involved with innovative approaches to finding energy reserves.Marigoldrecently built a facility to extract natural gas at a cost of $11.2million. However,Marigoldis also legally
MarigoldProcesses is involved with innovative approaches to finding energy reserves.Marigoldrecently built a facility to extract natural gas at a cost of $11.2million. However,Marigoldis also legally responsible to remove the facility at the end of its useful life of twenty years. This cost is estimated to be $17million (the present value of which is $7.0million). What is the journal entry required to record the asset retirement obligation?
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