TBS F4 - ARO Flashcards by Andres Garcia | Brainscape

Q

How do you calculate the Asset Retirement Obligation(ARO)?

A

Total Cost X PV of $1 of (4.25% of 5 yrs)

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Q

JE for Unrecorded Liability (ARC/ARO)

A

Debit - Asset Retirement Cost
Credit - Asset Retirement Obligation

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Q

How do you calculate the accretion over (X) years?

A

Total cost(future value) minus PV ARO

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