Data for Dignity Petroleum for 12/31/16 are as follows: a. Compute DD&A using a common unit of
Question:
Data for Dignity Petroleum for 12/31/16 are as follows:
a. Compute DD&A using a common unit of measure based on BOE.
b. Compute DD&A using the unit-of-revenue basis.
c. Which would be the appropriate basis?
Transcribed Image Text:
Unrecovered costs. . $700,000 Estimated future development costs for proved reserves. 100,000 Estimated future decommissioning costs.. 200,000 Net salvage value of properties... 60,000 Oil bbl Gas Mcf Proved reserves, 12/31/16.. 100,000 300,000 Proved developed reserves, 12/31/16. 75,000 120,000 Production during year. 20,000 50,000 Selling price during year.. $60/bbl $5.00/Mcf Selling price, 12/31/16... 70/bbl 7.50/Mcf Expected selling price, 2017. 74/bbl 8.00/Mcf
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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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