Cameron Oil Company operates Leases X and Y. Cameron Oil transfers 50 barrels of oil from Lease
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Cameron Oil Company operates Leases X and Y. Cameron Oil transfers 50 barrels of oil from Lease X to Lease Y to be used as fuel on Lease Y. The current spot oil price is $66/bbl and the severance tax rate is 5%. Cameron owns 100% working interests in Lease X and Lease Y. Lease X has a 1/8 royalty interest, and Lease Y a 3/16 royalty interest.
REQUIRED: repare an entry for the transfer of the oil.
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Related Book For
Fundamentals Of Oil And Gas Accounting
ISBN: 9781593701376
5th Edition
Authors: Charlotte J. Wright, Rebecca A. Gallun
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