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Jennings Oil began operations in 200A. The following transactions took place in the first two years of operations. Each Block is a separate cost center. All properties are located offshore Norway. Jennings uses successful-efforts accounting. Year Transaction Block A Block B Block c 200A Signing bonus $ 800,000 $ 750,000 $1,200,000 G&G 500,000 400,000 700,000 Exploratory drilling 1,600,000 None 650,000 Drilling results Well dry N/A Well still in progress (#1) 200B Exploratory drilling 1,800,000 950,000 (#1) 400,000 Drilling results Successful Well dry (property Successful not abandoned) Proved reserves 5,000,000 bbl N/A 6,000,000 bbl Proved developed 600,000 bbls N/A 400,000 bbl reserves Probable reserves 1,000,000 bbl N/A 1,200,000 bbl Future $28,000,000 N/A $32,000,000 development cost Production 180,000 bbl N/A 220,000 bbl 1. Calculate total DD&A for 200B using U.S. GAAP. 2. Calculate total DD&A for 200B using international GAAP. Assume that all possible costs are capitalized and that probable reserves are included when computing DD&A.

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