question archive A) Hinshaw Oil Co
A) Hinshaw Oil Co
Subject:AccountingPrice: Bought3
A) Hinshaw Oil Co. constructed an oil pipeline that was completed at the end of 2020. It estimates (at the end of 2020) that in 20 years when the pipeline will be decommissioned, it will need to pay $20 million in dismantling costs. Hinshaw uses a 6% discount rate. Prepare the relevant journal entries for 2020 and 2021 under IFRS for Hinshaw relating to the dismantling costs. B) In 2020, an employee informs TAM Co. that he will be taking 6 months paternity leave. This will cost TAM $1,000 a month. At the end of 2020, the employee has completed 4 months leave and has been paid $4,000. Prepare the relevant journal entries for 2020 for TAM.
