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Oil Exploration destroys land and must set up an asset retirement obligation. Annual obligation upon retirement 1,000,000 Interest rate 5% Number of payments 5 Years

Oil Exploration destroys land and must set up an asset retirement obligation.

Annual obligation upon retirement	1,000,000
Interest rate	5%
Number of payments	5
Years until retirement	30

10) What is the reduction in pretax income as a result of recording the ARO?

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