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On March 1, 2024, a company entered into an agreement with the state to obtain the rights to operate a mineral mine for $6 milfion
On March 1, 2024, a company entered into an agreement with the state to obtain the rights to operate a mineral mine for $6 milfion The mine is ixpected to produce 155,000 tons of mineral. As part of the agreement, the company ogrees to restore the land to its original condition after nining operations are completed in approximately five years. Management has provided the following possible outtlows for the restoration costs hat will occur flve years from now: (PV of \$1, PVA of \$1) The company's credit-adjusted risk-free interest rate is 9%. During 2024, the company extracted 27,900 toris of ore from the mine. How much accretion expense will the company record in its income statement for the 2024 calender yeor? The company's credit-adjusted risk-free interest rate is 9%. During 2024, the company extracted 27,900 tons of ore from the mine. How much accretion expense will the company record in its income statement for the 2024 calendar year? Multiple Choice $41766 $35,169 544798 $30,309
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