Virginia Oil Corporation, a full cost company, incurs the following costs during 2016:

During 2017, the following costs were incurred:
Delay rentals were paid on Lease A, $2,000, and Lease B, $3,000.
In the latter half of 2017, drilling operations were commenced on both leases, and costs were incurred as follows:

REQUIRED: Record the above transactions.

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G&G costs nondirect. Acquisition costs: Lease A.... Lease B... $25,000 26,000 32,000 G&G costs direct to Lease A. 15,000 Ad valorem taxes on Lease B... 1,200 Dry-hole contribution on land adjacent to Lease B. . . 40,000 Nonrecoverable delinquent taxes on Lease A paid at the time of acquiring the lease.. 2,100 Cost of maintaining lease records: Lease A... Lease B.. 500 600