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Business, 21.12.2019 03:31 Serenitybella

Acompany buys an oil rig for $3,000,000 on january 1, 2018. the life of the rig is 10 years and the expected cost to dismantle the rig at the end of 10 years is $600,000 (present value at 10% is $231,330). 10% is an appropriate interest rate for this company. what expense should be recorded for 2018 as a result of these events? a. depreciation expense of $360,000 b. depreciation expense of $300,000 and interest expense of $23,133 c. depreciation expense of $300,000 and interest expense of $60,000 d. depreciation expense of $323,133 and interest expense of $23,133

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Acompany buys an oil rig for $3,000,000 on january 1, 2018. the life of the rig is 10 years and the...
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