Transcribed TextTranscribed Text

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.

Solution PreviewSolution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

Jennings Oil
    $10.00 for this solution

    PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

    Find A Tutor

    View available Accounting Tutors

    Get College Homework Help.

    Are you sure you don't want to upload any files?

    Fast tutor response requires as much info as possible.

    Upload a file
    Continue without uploading

    We couldn't find that subject.
    Please select the best match from the list below.

    We'll send you an email right away. If it's not in your inbox, check your spam folder.

    • 1
    • 2
    • 3
    Live Chats