Duck Petroleum hires a drilling contractor to drill a well to the depth of 8,000 feet at a cost of $300,000. The $300,000 cost includes $5,000 for surface casing. Any drilling to be completed after reaching the 8,000 foot depth is to be paid at a day rate of $4,000 per day. The 8,000 foot depth is reached on September 14, 2017, and the additional drilling to 10,000 feet is completed on October 27, 2017.

Duck incurred additional costs as shown on the following schedule.

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

*To be determined from the information given in the problem statement.

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Description Amount IDC L&WE 1. Rig drilling turnkey contract. $ 2. Rig drilling day rate .... 3. Location and road preparation... 8,000 4. Drilling water... 7,500 5. G&G select drillsite 22,400 6. Electric logging... 1,200 7. Bits..... 13,000 8. Surface damages 6,300 9. Mud (after 8,000') 40,000 10. Production casing 35,000 11. Cementing services 11,000 12. Casing crews. 5,500 13. Tank battery.... 11,500 14. Flow lines and connections.. 5,000 15. Separators. 7,000 16. Cement.... 48,000 17. Installing separators 4,800