Aggie Oil Company owns only one lease in the United States, Lease Q. The following information for Lease Q, which is burdened with a 1/6 royalty, is as of 12/31/20XD. All reserve, production, and sales data apply only to Aggie Oil Company.

Additional data: Aggie also placed in service on 8/1/20XB a building that cost \($140,000\) and has a life of 10 years with a salvage value of \($9,000.\) The building houses the corporate headquarters that supports oil and gas operations in the United States and non oil and gas operations in Canada. The operations conducted in the building are general in nature and are not directly attributable to any specific exploration, development, or production activity. Since the building is not directly related to exploration, development, or production and supports activities in more than one cost center, it is depreciated using straight-line depreciation for financial accounting.
Compute DD&A for 20XD for the following accounting methods.

a. Tax: assuming Aggie is an independent producer (ignore percentage depletion) and accumulated depletion is \($10,000.\)

b. Tax: assuming Aggie is an integrated producer and accumulated depletion is \($10,000.\)

c. SE: assuming accumulated DD&A - P/P is \($5,000\) and accumulated DD&A - wells is \($100,000.\)

d. FC: assuming exclusion of all possible costs from the amortization base. Assume accumulated DD&A is \($400,000.\)

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Acquisition costs.. Test-well contributions. G&G, direct..... $ 40,000 12,000 70,000 W/P IDC (incurred 6/24/20XD) 80,000 W/P-L&WE..... 6,000 Well-L&WE (end of 2nd year).. 250,000 Wells-IDC (incurred in 20XB and all productive) . . 600,000 Future development costs.. 400,000 Proved reserves, 12/31/20XD 300,000 Proved developed reserves, 12/31/20XD 100,000 Production..... 18,000 Sales..... 15,000