Basic Company started operations on 1/1/05. At 12/31/05, the company owned the following leases in Canada: The

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Basic Company started operations on 1/1/05. At 12/31/05, the company owned the following leases in Canada:

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The production was sold at \($24/bbl\) and \($1.50/Mcf.\) Current prices at 12/31/05 are \($25/bbl\) and \($2.00/Mcf.\)
Compute DD&A for Canada as follows assuming:

a. No exclusions from the amortization base, and using unit-of-production converted to a common unit of measure based on energy (equivalent Mcf ).

b. No exclusions from the amortization base, and using unit-of-revenue method.

c. All possible costs are excluded from amortization, and using a common unit of measure based on energy (equivalent Mcf ).

d. All possible costs are excluded from amortization, and using unit-of-revenue method.

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Fundamentals Of Oil And Gas Accounting

ISBN: 9780878147939

4th Edition

Authors: Rebecca A. Gallun, Ph.D. Wright, Charlotte J, Linda M. Nichols, John W. Stevenson

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