Manufacturing Incorporated (MI) purchased land on 1 January 20X2, which it started to operate as...
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Manufacturing Incorporated (MI) purchased land on 1 January 20X2, which it started to operate as a gravel pit. The gravel pit will be operating for the next 19 years At the end of the 19 years Mi will be required to incur an estimated cost of $6.6 million to restore the land. This is required by government legislation. The interest rate that reflects the risks to Mi is 9%. (PY of S1. PVA of S1. and PVAD ofS1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Provide the journal entry for the restoration costs on 1 January 20X2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your time value answers to 5 decimal places. Enter your answers in whole dollars, not in millions.) View transaction list Journal entry worksheet Record the provision for land. Note: Enter debits before credits. Date Debit Credit 20X2
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