Business, 27.04.2021 15:20 heavenmckissack21
Quality entered into a leasing agreement with the provincial government at the beginning of fiscal 2020. Quality was granted access to the timber resources from a parcel of province-owned land for a period of five years. Quality commenced harvesting the timber right away and as of year end had harvested 10% of the land. A condition of this agreement is that Quality replant trees at the end of the five-year lease agreement. Quality estimates that it will cost $500,000 to reforest the full plot at the end of five years. Eight percent is the appropriate discount rate to reflect this transaction. This obligation has not been recorded in th
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