Cornell Oil Company is the operator of Lease A and Lease B and has a 60% WI

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Cornell Oil Company is the operator of Lease A and Lease B and has a 60% WI in each lease. A piece of equipment that originally cost $50,000 is transferred from Lease A to Lease B. The current market price of the equipment is $40,000.

The equipment is in Condition C. The working interest owners of Lease B will pay for reconditioning.

REQUIRED: Prepare an entry to record the transfer.

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Fundamentals Of Oil And Gas Accounting

ISBN: 9781593703639

6th Edition

Authors: Charlotte Wright

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Question Posted: Mar 08, 2024 10:00 AM

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Cornell Oil Company is the operator of Lease A and Lease B and has a 60% WI

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To record the transfer of equipment from Lease A to Lease B we need to account for the chan...View the full answer

Fundamentals Of Oil And Gas Accounting

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