Answered step by step
Verified Expert Solution
Question
1 Approved Answer
part b plz Depreciation Expense begin{tabular}{|r|} hline 368,344 hline end{tabular} Asset Retirement Obligation begin{tabular}{|r|r} hline 368,344 hline end{tabular} (To record depreciation expense) Interest
part b plz
Depreciation Expense \begin{tabular}{|r|} \hline 368,344 \\ \hline \end{tabular} Asset Retirement Obligation \begin{tabular}{|r|r} \hline 368,344 \\ \hline \end{tabular} (To record depreciation expense) Interest Expense Asset Retirement Obligation (To record interest expense) Swifty Corp. erected and placed into service an offshore oil platform on January 1,2023 , at a cost of $8 million. Swifty is legally required to dismantle and remove the platform at the end of its nine-year useful life. Swifty estimates that it will cost $0.8 million to dismantle and remove the platform at the end of its useful life and that the discount rate to use should be 9%. Using (a) factor Table A. 2, (b) a financial calculator, or (c) Excel function PV. Ignore production related costs for this question. Asset Retirement Obligation $368,344 Prepare any necessary adjusting entries that are associated with the asset retirement obligation and related expenses at December 31, 2023, assuming that Swifty follows IFRS. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Prepare any necessary adjusting entries that are associated with the asset retirement obligation and related expenses at December 31, 2023, assuming that Swifty follows ASPE. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Depreciation Expense Interest Expense Debit (To record depreciation expense) Accretion Expense Credit (To record accretion expense)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started