Norton County operated a landfill,and accounted for it as an enterprise fund.The closure and postclosure care costs are estimated to be $15,000,000.It is estimated that the capacity of the landfill is 3 million tons of waste and that waste will be accepted for 10 years.During 2012,250,000 tons of waste was accepted by the landfill.The charge for closure and postclosure care costs for 2012 would be:

Question

Quizplus · Accepted Answer

The charge for closure and postclosure care costs is calculated based on the proportion of the landfill's capacity used. With 250,000 tons accepted in 2012 out of a total capacity of 3 million tons, 1/12 of the capacity has been used. Therefore, 1/12 of the estimated $15,000,000 costs should be recognized, which is $1,250,000.

Norton County Operated a Landfill,and Accounted for It as an Enterprise