登录之后可查看解析

C is corrent. The asset retirement obligation (ARO) is recorded at its fair value in the period in which it is incurred. Subsequently, it is adjusted for revisions in estimates and the passage of time. The beginning balance in the asset retirement obligation account is $257,000. The fair value of the additional unconditional retirement obligations incurred during the year was $68,000 and increases the ARO. The $87,000 paid toward the settlement of obligations decreases the ARO. The $26,000 accretion expense is the expense recognized on the ARO due to the passage of time and will increase the ARO. ($257,000 + $68,000 — $87,000 + $26,000 = $264,000).
A is incorrect because it ignores accretion expense and increases the ARO by the undiscounted cash flows, instead of the discounted cash flows ($257,000 + $110,000 –  $87,000 = $280,000).
B is incorrect because it ignores accretion expense ($257,000 + $68,000 –  $87,000= $238,000).
D is incorrect because it increases the ARO by the undiscounted cash flows, instead of the discounted cash flows ($257,000 + $110,000 –  $87,000 + $26,000).