Description: In 2018 the Canadian government purchased the Kinder Morgan Trans Mountain Pipeline for $4.5 billion of our tax dollars. Around that time, the total estimated cost to complete the pipeline was $7.4 billion. Now though, it appears that the total costs for Canadians will be somewhere in the range of $17 billion. The federal Liberal party is defending the decision to buy the pipeline as a necessary one in order to get Canadian petroleum to market.
Date: February 7, 2020
1) Did you know that our government owned this pipeline? What’s your opinion of government ownership in this situation?
2) What do you think may have caused such an increase in the cost estimate of this project?
3) Page 521of Wiley’s Advanced Accounting shows a sample Consolidated Statement of Financial Position for a government entity. On which part of this statement do you think the pipeline should appear?