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On March 1, 2021 Shipley Resources entered into an agreement with the state of Alaska to obtain the rights to operate a mineral mine for

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On March 1, 2021 Shipley Resources entered into an agreement with the state of Alaska to obtain the rights to operate a mineral mine for 56 million. The mine is expected to produce 155.000 tons of mineral. As part of the agreement, Shipley agrees to restore the land to its original condition after mining operations are completed in approximately five years. Management has provided the following possible outfiows for the restoration costs that will occur five years from now (P.S. PVA OL58 (Use appropriate factor(s) from the tables provided) Cash Outflow $520,000 675,000 830,000 Probability 203 sex 50% Shipley's credit adjusted risk free interest rate is 9%. During 2021, Shipley extracted 27.900 tons of ore from the mine. How much accretion expense will the company record in its income statement for the 2021 fiscal year Multicile Choice $44798 $35.359 Shipley's credit adjusted risk free interest rate is 9% During 2021. Shipley extracted 27,900 tons of ore from the mine. How much accretion expense will the company record in its income statement for the 2021 fiscal year? Multiple Choice 54498 54156 $39.300

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