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On January 1, 2024, a company acquired a building that includes gas tanks below it. The company estimates a liability of $200,000 for the

On January 1, 2024, a company acquired a building that includes gas tanks below it. The company estimates a liability of $200,000 for the disposal of the gas tanks in 10 years. The present value factor for an interest rate of 10% and a duration (n) of 10 years is 0.38554. Given a discount rate of 10%, what is the Asset Retirement Obligation (ARO) that the company should recognize on January 1, 2024?

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