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Jennings Oil began operations in 200A. The following transactions took place in the first two years of operations. All properties are located offshore Norway. Jennings uses full-cost 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 Welldry N/A Well still in progress (#1) 200B Exploratory drilling 1,800,000 950,000 (#1) 400,000 Drilling results Successful Welldry Successful (property not abandoned) Proved reserves 5,000,000 bbls N/A 6,000,000 bbls Proved developed 600,000 bbls N/A 400,000 bbls reserves Probable reserves 1,000,000 bbls N/A 1,200,000 bbls Future $28,000,000 N/A $32,000,000 development cost Production 180,000 bbls N/A 220,000 bbls 1. Calculate total DD&A for 200B using U.S. GAAP and assuming no exclusions. 2. Calculate total DD&A for 200B using U.S. GAAP and assuming all possible exclusions.

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