The Clarence Oil Company provides the following information for the year ended December 31, 2017: REQUIRED: a.

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The Clarence Oil Company provides the following information for the year ended December 31, 2017: image text in transcribed

REQUIRED:

a. Prepare a ceiling test and an entry, if necessary, for the write-off of capitalized costs. Ignore income taxes.

b. Assuming the PV of future gross revenues is $70,000,000, repeat the requirements for part a.

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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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Question Posted: May 31, 2024 10:16 AM

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The Clarence Oil Company provides the following information for the year ended December 31, 2017: REQUIRED: a.

Question:

PV of future gross revenues. PV of future related costs.. $60,000,000 15,000,000 50,000,000 Capitalized costs of proved properties. Unproved properties not being amortized. Accumulated DD&A . . . 11,000,000 (4,000,000)

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Fundamentals Of Oil And Gas Accounting

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