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On January 1. Thermal Power Incorporated builds a nuclear plant 50 miles outside of Timmins Ontario that it is legally required to dismantle and remove
On January 1. Thermal Power Incorporated builds a nuclear plant 50 miles outside of Timmins Ontario that it is legally required to dismantle and remove at the end of its 40-year useful life. The total cost of dismantling and removing the plant is estimated at $651100000. The discount rate is 12%. Which of the following entries would be used to record the interest liability relating to the asset retirement obligation at the end of year one using ASPE? Dr. Interest Expense $19533000 Dr. Accretion Expense $839669 Dr. Interest Expense $839669 Dr. Asset Retirement Obligation $839669
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