Launch Oil Company owns a working interest in the Carpenter Lease in Texas. The lease is burdened

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Launch Oil Company owns a working interest in the Carpenter Lease in Texas.

The lease is burdened with a 3/16 royalty interest. During April, a total of 4,000 barrels of oil is sold at $90/bbl to a refinery owned 100% by Launch Oil. Assume the severance tax rate is 5% in Texas.

REQUIRED: Prepare entries for the producer and the refinery purchaser.

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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 10:01 AM

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Launch Oil Company owns a working interest in the Carpenter Lease in Texas. The lease is burdened

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To prepare entries for both the producer Launch Oil Company and the refinery purchaser also Launch O...View the full answer

Fundamentals Of Oil And Gas Accounting

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