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

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business. true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.