Question: Answer the below questions using the FASB Codification. Make sure that you properly cite the ASC reference. 1. What is the accounting treatment for recognizing

Answer the below questions using the FASB Codification. Make sure that you properly cite the ASC reference.

1. What is the accounting treatment for recognizing asset retirement obligations (ARO)?

2. How is the ARO initially measured?

3. During the life of the long-term asset that has restoration costs, if there is new information that changes the initial measurement of the ARO, how should a company account for the change in the ARO?

4. Why is interest capitalized during the construction period for assets built for a companys own use? Why is interest considered to be part of the costs necessary to get the asset ready for its intended use?

5. Why is interest not capitalized on inventories?

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