Latitude Energy decided to explore some acreage in Texas before acquiring any leases.

Latitude acquired shooting rights only on 15,000 acres owned by Mr. T for \($0.10/acre.

Latitude\) obtained shooting rights coupled with an option to lease on 10,000 acres owned by Mr. H for \($0.25/acre.\) After completing G&G surveys at a cost of \($85,000,\) Latitude decided to lease 5,000 acres from Mr. T, paying a bonus of \($35/acre.\) Latitude also decided to lease 5,000 acres from Mr. H, paying the same bonus of \($35/acre.

Latitude’s\) income statement has seen better days, and although it will not help much, Latitude decides to capitalize every possible cost. Give the entries.