In 2018, Port Company purchased the working interest of an unproved lease for $100,000. In 2019, Port

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In 2018, Port Company purchased the working interest of an unproved lease for

$100,000. In 2019, Port Company recognized impairment of $20,000 on this lease.

In 2020, Port Company sold the entire working interest to Frank Company for:

a. $70,000

b. $110,000 Assume instead that the property was assessed on a group basis and sold for:

c. $70,000

d. $110,000 REQUIRED: Give the entry to record the sale in each of the above situations, assuming that Port Company is a successful efforts company.

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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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In 2018, Port Company purchased the working interest of an unproved lease for $100,000. In 2019, Port

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Fundamentals Of Oil And Gas Accounting

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