On March 1, 20X1 HBB Ltd. estimated that in 6 years, on March 1, 20X7 it...

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On March 1, 20X1 HBB Ltd. estimated that in 6 years, on March 1, 20X7 it would have to spend $280,000 retiring one of the company's plants. Currently, interest rates are at 5%. The company uses ASPE. In the blank boxes below, please provide the amounts asked for in each of the following questions in this order (when entering amounts please do not use commas, negative signs, dollar signs or cents - please round your answer to the nearest dollar). Blank 1: The amount of accretion expense relating to this obligation that the company will report in its statement of income for the year ending December 31, 20X1. Blank 2: The balance in the asset retirement obligation account pertaining to the above on December 31, 20X1. Blank # 1 Blank # 2 DJC Ltd., which uses IFRS, operates a coffee shop and began a promotion to increase the sales of its dark roast coffee in December 20X1. Every time that a customer buys a cup of this type of coffee for $2.00 each in December, the customer gets a coupon for 1 free mini cookie that usually sells for $.40 each and costs the company $.20 to produce. Customers cannot use or redeem the coupons until January 20X2. In December 20X1, the company sold 2,800 cups of dark roast coffee. Management expects customers will redeem 90% of the coupons based on many promotions like this that the company has had in the past. In the blank box below, please provide the amount asked for (when entering amounts please do not use commas, negative signs or dollar signs or cents - please round your answer to the nearest dollar). Blank 1: The sales revenue for the dark roast coffee in the month of December 20X1. On March 1, 20X1 HBB Ltd. estimated that in 6 years, on March 1, 20X7 it would have to spend $280,000 retiring one of the company's plants. Currently, interest rates are at 5%. The company uses ASPE. In the blank boxes below, please provide the amounts asked for in each of the following questions in this order (when entering amounts please do not use commas, negative signs, dollar signs or cents - please round your answer to the nearest dollar). Blank 1: The amount of accretion expense relating to this obligation that the company will report in its statement of income for the year ending December 31, 20X1. Blank 2: The balance in the asset retirement obligation account pertaining to the above on December 31, 20X1. Blank # 1 Blank # 2 DJC Ltd., which uses IFRS, operates a coffee shop and began a promotion to increase the sales of its dark roast coffee in December 20X1. Every time that a customer buys a cup of this type of coffee for $2.00 each in December, the customer gets a coupon for 1 free mini cookie that usually sells for $.40 each and costs the company $.20 to produce. Customers cannot use or redeem the coupons until January 20X2. In December 20X1, the company sold 2,800 cups of dark roast coffee. Management expects customers will redeem 90% of the coupons based on many promotions like this that the company has had in the past. In the blank box below, please provide the amount asked for (when entering amounts please do not use commas, negative signs or dollar signs or cents - please round your answer to the nearest dollar). Blank 1: The sales revenue for the dark roast coffee in the month of December 20X1.

Answer rating: 100% (QA)

SOLUTION Blank 1 The amount of accretion expense relating to this obligation that the company will r... View the full answer