On January 1, Chronicle Energy Group, Inc. acquired an oil processing plant at a total cost of $ 13,530,000, and paid cash. The estimated cost ( in today’s market) to dismantle the plant and restore the property at the end of the plant’s 9- year life is $ 2,160,000. Chronicle cost of capital is 5%. Chronicle depreciates the asset over its useful life by using the straight- line method with no salvage value. Prepare the journal entries required to record the acquisition of the plant asset.

Answer rating: 100% (QA)

Cost of the plant 13530000 Dismantling Cost 2160000 a... View the full answer