Mountain Petroleum had an exploratory well in progress at the end of 2018. Total costs incurred by

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Mountain Petroleum had an exploratory well in progress at the end of 2018. Total costs incurred by 12/31/18 were $300,000. During January 2019, drilling was continued, and costs of $200,000 were incurred. Total depth was reached, and the well was determined to be dry by the end of January. Assuming Mountain’s financial statements are not published until early February, what costs, if any, should be expensed for 2018 and for 2019?

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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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