1.The companys controller is questioning whether this liability for asbestos disposal is even necessary at all. He argues that asbestos must only be remediating but if it is disturbed (i.e., such as through renovations), and points out that the company does not have any immediate plans to renovate the building. Please respond to this question using ASC Authoritative Guidance. Specifically, answer the controllers question is a liability even necessary if the company plans for disposal or renovation of this building are uncertain?

2. Determine whether the additional liability for the newly discovered asbestos is considered a change in accounting estimate or an accounting error. Note that this is not a change in accounting principle. Support your answer using appropriately cited relevant authoritative guidance.

3. Describe how the company ought to record this $4 million dollar increase in the ARO (i.e., prospectively, or through a retrospective adjustment). Which specific accounts should be debited/credited in the adjustment? Present a suggested journal entry along with your recommendation. You may disregard the use of present value for this case.