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Please answer all parts! 4a. On January 1, 2018. HIJ Corp purchases a coal mine, which requires environmental clean-up at the end of its 10
Please answer all parts!
4a. On January 1, 2018. HIJ Corp purchases a coal mine, which requires environmental clean-up at the end of its 10 y car useful life. The purchase price is $50.000.000, paid immediately in cash. The clean-up is estimated to cost $12,000,000. HIJ has a cost of capital of 10%. Show the journal entry for the purchase. 4b. Show any adjusting entries made at the end of the year on December 31, 2018. (Ignore depreciation / depletion.) 4c. What amount will HIJ report on its December 31, 2018 balance sheet for its asset retirement obligation?
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Daniel Short
5th Edition
0073208140, 978-0073208145
