Zepher Company acquired 100% of the working interest in an unproved property at a cost of ($50,000).

Question:

Zepher Company acquired 100% of the working interest in an unproved property at a cost of $$50,000$. Zepher later sold the working interest, retaining an overriding royalty interest (ORI). Give the entry to record the conveyance of the working interest, assuming Zepher is a successful efforts company and received $30,000.

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