On January 1, 2023, Dana Corporation makes investments in a new factory. They provide you with the following information:
Cost of the factory			75400000
Discount rate			6.50%
Estimated asset retirement obligation			98000000
The useful life of the factory in years			20
Assume the company uses the straight-line method of depreciation and applies IFRS.
Required:
1) Prepare the journal entries relative to this project for the first two years.
2) During 2029, the company changed its estimate of the asset retirement obligation as follows:
	Total amount	80000000
	discount rate	7.50%
Prepare all journal entries relative to this project for the year 2029.
3) On January 15, 2037 the actual asset retirement costs amount to $82,000,000. Prepare the journal entry to record the realization of the ARO.

Answer rating: 100% (QA)

Step 11 1 January 1 2023 Debit Factory 75400000 Credit ... View the full answer