Business, 18.08.2019 01:10 TJxx187

On january 1, 2x01, big oil placed in service an offshore oil platform that it constructed. big oil is legally required to dismantle and remove the platform at the end of its 10-year estimated life. using expected present value techniques, big oil recorded an estimated asset retirement obligation (aro) of $100,000 on january 1, 2x01. the aro measurements on january 1, 2x01, are as follows: expected cash flow before inflation: $190,000expected cash flow adjusted for inflation and market risk: $220,000present value using credit-adjusted risk-free rate: $100,000assuming that the aro is settled on december 31, 2x10, for $170,000, what is the gain or loss on the settlement? a. $70,000 lossb. $20,000 gainc. $50,000 gaind. no gain or loss

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