Company A acquired a mine in Ontario on January 1, 2020. Under Provincial Law they must restore the property to its original condition after use which is expected to be 10 years Company A in the past has done more than the minimum required by law and has built schools, parks and recreation centres They immediately announced plans to build a park on this location when they are done in 10 years They estimate the cost of meeting the minimum legal requirements is $ 1,000,000 in 10 years They estimate that building the park will add $ 1,000,000 Observable discount rate is 5% At December 31, 2021 the cost estimates have changed to $ 1,200, 000 for each. This change was due to the expected higher costs of materials at that time than originally estimated at Jan 1. 2020.

Company A acquired a mine in Ontario on January 1, 2020. Under Provincial Law they must restore the property to its original condition after use which is expected to be 10 years Company A in the past has done more than the minimum required by law and has built schools, parks and recreation centres They immediately announced plans to build a park on this location when they are done in 10 years They estimate the cost of meeting the minimum legal requirements is $ 1,000,000 in 10 years They estimate that building the park will add $ 1,000,000 Observable discount rate is 5% At December 31, 2021 the cost estimates have changed to $ 1,200, 000 for each. This change was due to the expected higher costs of materials at that time than originally estimated at Jan 1. 2020.

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

ChapterA2: Comprehensive Case Problems

Section: Chapter Questions

Problem 3.9CCP

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