What account is debited when the liability is initially capitalized for an asset retirement obligation to dismantle an ocean oil rig? Group of answer choices a retirement expense account the oil rig asset account an accretion expense account a separate quasi-asset account

What account is debited when the liability is initially capitalized for an asset retirement obligation to dismantle an ocean oil rig? Group of answer choices a retirement expense account the oil rig asset account an accretion expense account a separate quasi-asset account

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 14GI

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Question

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What account is debited when the liability is initially capitalized for an asset retirement obligation to dismantle an ocean oil rig?

Group of answer choices

a retirement expense account

the oil rig asset account

an accretion expense account

a separate quasi-asset account

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