Dwight Oil Company computes DD&A on a fieldwide basis. Balance sheet data as of 12/31/15 for Dwight’s Anadarko Basin field are as follows:

REQUIRED: Using BOE:

a. Calculate DD&A for 2016.

b. Calculate DD&A for 2016, 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 2016.

Transcribed Image Text:

Unproved properties, net of impairment.. Proved properties. Less: Accumulated DD&A. $ 500,000 (100,000) $ 200,000 Net proved properties.. 400,000 3,000,000 Wells and equipmentIDC.. Wells and equipment-L&WE.. 1,400,000 Less: Accumulated DD&A-Wells. (1,300,000) Net wells and equipment $3,100,000