问题详情

Acompanyacquiresamanufacturingfacilityinwhichitwillproducetoxicchemicals.Thecostofthefacility(exclusiveoftheunderlyingland)is$25millionanditisexpectedtoprovidea10-yearusefullife,afterwhichtimethecompanywilldemolishthebuildingandrestoretheunderlyingland.Thecostofthisrestorationandcleanupisestimatedtobe$3millionatthattime.Thefacilitywillbeamortizedonastraight-linebasis.Thecompany’sdiscountrateassociatedwiththisobligationis6.25percent.Thetotalexpensethatwillberecordedinthefirstyearassociatedwiththeassetretirementobligationonthispropertyisclosestto:
A.$163,618.
B.$224,945.
C.$265,879.