Anatolia Limited, which uses a 5% discount rate and follows IFRS, completed an underground oil tank which

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Question:

Anatolia Limited, which uses a 5% discount rate and follows IFRS, completed an underground oil tank which went into use on July 1, 2021 for a useful life of 45 years. The company determined it was required to record an asset retirement obligation for the underground oil tank. It will likely cost $43M to restore the ground where the tank is located. Anatolia’s year-end is June 30.
Required
(a) Calculate the present value of the obligation. Clearly denote the value of each input (i.e. N = X periods, I = Y%, PV = $Z, etc.). (5 marks)
(b) In good form, record the journal entry for the restoration obligation on July 1, 2021. (5 marks)
(c) In good form, record the depreciation as well as interest and/or accretion adjustment journal entries for the underground oil tank on June 30, 2022. (10 marks)