Using the full cost accounting, TJX Co. abandoned a proved property during the year. Costs...
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Accounting
Using the full cost accounting, TJX Co. abandoned a proved property during the year. Costs relating to the property are as follows. Proved property $ 20,000 Wells and equipment 500,000 Exploratory dry holes 340,000
A. TJX Co. should recognize a loss of $20,000.
B. TJX Co. has to debit Abandoned Costs account $860,000.
C. TJX Co. will debit Exploratory Dry Holes account $340,000
. D. None of the above is correct.
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