3.  On January 1, 20X1, ABC Oil Company erected an oil platform in the Gulf of Mexico. ABC is legallyrequired to dismantle and remove the platform at the end of its useful life, estimated to be three years. ABCestimates that dismantling and removal will cost $2,000,000. ABC estimate the environmental liabilityrelated to the oil platform based on a 10 percent discount rat
(E) ABC depreciate its assets using thestraight-line metho
(D) On January 2, 20X4, ABC contracts with DEF In
(C) to dismantle the platform at acontract price of $2,100,000. Instructions
【題組】(a) Prepare all the journal entries related to the environmental liability necessary in 20X1.