Taft Oil Company computes DD&A on a field-wide basis. Balance sheet data as of 12/31/18 for Taft’s West Texas field are as follows:

REQUIRED: Using BOE:

a. Calculate DD&A for 2019.

b. Calculate DD&A for 2019, assuming that part of the field, a proved property with gross acquisition costs of $30,000, gross equipment cost of $70,000, and gross IDC of $215,000, was abandoned during 2019.

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Unproved properties, net of impairment... Proved properties... Less: Accumulated DD&A Net proved properties.. Wells and equipment-IDC.. Wells and equipment-L&WE..... Less: Accumulated DD&A-Wells.. Net wells and equipment... Taft's activities during 2019 were as follows: Unproved properties acquired..... Delay rentals paid on unproved properties Test-well contributions paid on unproved properties Title exams paid on unproved property.... Title defenses paid. Tanks, separators, etc., installed...... Development well, in progress 12/31/19.. $ 500,000 (100,000) Unproved properties proved during 2019, net of impairment.. Exploratory dry hole drilled...... Successful exploratory well drilled Development dry hole drilled. Service well..... Production .... Proved reserves, 12/31/19 Proved developed reserves, 12/31/19 3,000,000 1,400,000 (1,300,000) $ 200,000 $ 35,000 10,000 20,000 8,000 15,000 50,000 $3,100,000 275,000 400,000 300,000 325,000 Oil (bbl) 100,000 1,020,000 900,000 125,000 140,000 400,000 Gas (Mef) 500,000 5,000,000 4,700,000