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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Fundamentals Of Oil And Gas Accounting

ISBN: 9781593701376

5th Edition

Authors: Charlotte J. Wright, Rebecca A. Gallun

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