Sessions Petroleum hires a drilling contractor to drill a well. The contract specified that the well was

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Sessions Petroleum hires a drilling contractor to drill a well. The contract specified that the well was to be drilled to a depth of 10,000 feet at a cost of

$400,000. The $400,000 cost includes $50,000 for surface casing. Any drilling to be completed after reaching the 10,000-foot depth is to be paid at a day rate of

$3,000 per day. The 10,000-foot depth is reached on September 14, 2017, and the additional drilling to 12,000 feet is completed on October 27, 2017.

Sessions incurred additional costs as shown on the attached schedule.

REQUIRED: Complete the schedule showing whether the cost is IDC or L&WE.

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