Basic Petroleum, a new company using the successful efforts method of accounting, began operations in 2018 with the acquisition of four undeveloped leases, all individually significant.

REQUIRED: Give the entries assuming the preceding transactions. For simplicity, you may combine entries for the different leases for all items marked with an asterisk (*).

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Year Transaction Lease A Lease B Lease C Lease D 2018 Shooting rights* $35,000 None None $30,000 G&G costs, broad* 56,000 None None 80,000 Lease bonuses* 30,000 $40,000 $60,000 50,000 G&G costs, detailed* 70,000 30,000 40,000 35,000 Dry-hole contributions paid* 20,000 None None 25,000 Legal costs, title exams* 1,000 5,000 4,000 10,000 Legal costs, title defense None None 39,000 None Delinquent taxes (in contract and nonrecoverable) 25,000 None None None Dec 31 Impairment 10% 25% 40% 2019 Delay rentals* 2,000 10,000 3,000 8,000 Property tax* Miscellaneous 3,000 None 5,000 None Abandoned Drilled & +10% lease found oil Impaired