Recycle Exploration Is Involved with Innovative Approaches to Finding Energy

question 68

Multiple Choice

Recycle Exploration is involved with innovative approaches to finding energy reserves.Recycle recently built a facility to extract natural gas at a cost of $15 million.However, Recycle is also legally responsible to remove the facility at the end of its useful life of twenty years.This cost is estimated to be $21 million (the present value of which is $8 million) .What is the journal entry required to record the environmental liability?

• A)No journal entry required.
• B)Debit Natural Gas Facility for $21,000,000 and credit Environmental Liability for $21,000,000
• C)Debit Natural Gas Facility for $6,000,000 and credit Environmental Liability for $6,000,000.
• D)Debit Natural Gas Facility for $8,000,000 and credit Environmental Liability for $8,000,000.

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Definitions:

Action Plans

Detailed strategies or steps designed to achieve specific goals or outcomes.

Not-knowing

A stance in therapy where the therapist adopts a position of openness and curiosity, avoiding assumptions about the client's experience, to better explore and understand the client's perspective.

Collaborative Counseling

A therapeutic framework in which therapist and client work together as partners to understand and solve the client’s issues.

Assuming

The act of accepting something to be true without question or proof.