Contender Oil Corporation obtained shooting rights only for $10,000 on 5,000 acres owned by Mr. See. Contender also obtained shooting rights coupled with an option to lease for $12,000 on 4,000 acres owned by Mr. Que. The 4,000 acres owned by Mr. Que are located adjacent to the 5,000 acres owned by Mr. See.

Ignore any other acquisition costs.

REQUIRED:

a. Give the entries to record the rights obtained, assuming there is no apportionment of the cost between the option and the shooting rights.

b. Give the entry to record the rights obtained from Mr. Que, assuming instead that the $12,000 was apportioned between the option and the shooting rights.

c. Give the entry to record the leasing of all 4,000 of Mr. Que’s acres, assuming that the original cost of $12,000 was not apportioned between the option and the shooting rights.

d. Give the entry to record the leasing of only 1,000 acres from Mr. Que, again assuming that the original cost of $12,000 was not apportioned. Also assume Contender Oil Company did not apportion the amount in the suspense account based on the acreage leased.

e. Give the entry to record the leasing of 1,000 acres from Mr. Que, assuming that the original cost of $12,000 was not apportioned. Assume that Contender Oil Corporation apportioned the amount in the suspense account based on relative acreage leased.