Answer
Alternative one: The mothballing will be treated as a period cost. The benefits associated with the nuclear plant may be in future and not necessarily in the period when the mothballing occurs.
Alternative two: There will be no relationship with revenue for that period. Future benefits may not arise from the nuclear plant.
Work Step by Step
Alternative one: The mothballing will be treated as a period cost. The benefits associated with the nuclear plant may be in future and not necessarily in the period when the mothballing occurs.
Alternative two: There will be no relationship with revenue for that period. Future benefits may not arise from the nuclear plant.
