Hays Oil Company had the following transactions during the year:

a. Acquired an undeveloped lease, $55,000

b. Paid a drilling contractor as follows:

c. Paid costs in evaluating the well, $20,000

d. Completion costs for fracturing and perforating, $25,000 REQUIRED: Record the transactions.

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Footage rate for drilling..... Equipment costs (casing).. $250,000 75,000 Equipment costs (tanks, flow lines, and labor to install equipment).. 50,000