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    fzafrin Posts: 2, Reputation: 1
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    #1

    Apr 12, 2013, 10:51 PM
    financial accounting help
    How to solve this question?
    Midnight boil limited sells electricity generated its nuclear power plant.its managing director, Peter polly,is not overly concerned about the environment but nevertheless knows that the company has a legal obligation to clean up the site in 20 years time when the plant is shut on 30 June 2035.As at 30 June 2015,the best estimate to clean up the site (in 2035) is $10500000.one year later,on 30 June 2016,the best estimate at cleaning up the site ( in 19 years time) is still considered to be $10500000.The pre tax rates that reflect current market assessments of the time value of money and the risks specific to the liability were 7% as at 30 June 2015 & 6% as at 30 June 2016.

    REQUIRED:
    provide journal entries in relation to the above obligation for the years ending 30 June 2015 and 30 June 2016
    fzafrin's Avatar
    fzafrin Posts: 2, Reputation: 1
    New Member
    		  
    #2

    Apr 15, 2013, 09:50 PM
    Can anyone help me? I really tried a lot?
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