Your Client Hazelton Mining Recently Entered Into An Agreement

Some common practices consider the pension obligation to be a potential liability and apply FASB`s Statement No. 5, contingency accounting, to determine when a liability should be recognized. The purpose of assessing this statement is fair value that is not consistent with a reporting approach.5 A fair value assessment takes into account uncertainties as to the amount and timing of the debt payment, while the recognition decision, as defined in Statement 5, is based on the degree of uncertainty. Q: On January 1, 20×1, Co. entered into a franchise agreement with Hero Co. The franchise agreement gi… The company`s controller, Alice Cushing, is not sure how she should take into account the costs of restoration and asked you for advice. Alice is aware of an accounting standard that deals with this issue, but she is not sure of its provisions. It has reduced possible cash outflows for recovery costs in four ways: Send your thread up to 11:59 P.m. (ET) on Thursday of allocated modules/weeks, and send your response up to 11:59 p.m.

(ET) on the Monday of the same modules/weeks. Your client, Hazelton Mining, recently… Your client, Hazelton Mining, recently reached an agreement to obtain the rights to operate a coal mine in West Virginia for $15 million. Hazelton`s development costs amounted to $6 million when preparing the mine for the operation, which began on July 1. 2021. The Hazelton contract to restore the land and surrounding area to its original state after extraction is concluded in three years. The company`s controller, Alice Cushing, is not sure how she should take into account the costs of restoration and asked you for advice. Alice is aware of an accounting standard that deals with this issue, but she is not sure of its provisions.

It has reduced potential outflows of funds for remediation costs to four. Cash outflow Likely 3 million $US 5 million 5 million 6 million 20% 30% 25% 25% Allce also informs you that the interest rate without adjusted risk of the company`s credit is 9%. Before you respond to Alice, you need to research the problem. 5. Explain to Alice how Hazelton would explain the restoration if the restoration costs deviated from the liability recorded in three years. For the explanation, prepare the log entry to record the payment of the pension commitment in three years, provided the actual recovery fee was $4.7 million. A: A franchise is an agreement between the franchisor and franchisee, in which the license… Mineralization in the cronin mine is practiced by an Ag-Pb-Zn polymetallic storage work. The mineralization of sulphides is carried out in quartz plants, quartz fillings in case of error or along fractures in the form of sockets up to 40 m long and 6 meters wide inside the main error system or as a propagation in the environment.

There is a clear shingle of minerals inside the sockets; Galena, boulangerit and tetrahdrite are concentrated near the break plan, sphalrite spreading into modified and brecciated wall-rock.