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Question .. On January 1, 2019, Barbosa Company purchased a coal mining site for $2,000,000. Under the terms of the purchase agreement, Barbosa must restore
Question .. On January 1, 2019, Barbosa Company purchased a coal mining site for $2,000,000. Under the terms of the purchase agreement, Barbosa must restore the site to specified conditions at an estimated future cost of $325,000. Barbosa estimates that it will be able to operate the site for 20 years and will mine 25,000 tons of coal. Barbosa uses a 8% discount rate. In 2019, Barbosa mined 1,000 tons of coal. * Journal entries for recording accretion of the Asset Retirement Obligation on December 31, 2020 would include: Debit to Asset Retirement Obligation of $26,000 Debit to Accretion Expense of $6,027 Credit to Accretion Expense of $5,578 Credit to Asset Retirement Obligation of $26,000 need text answer can you help me out asap
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