Cruser Oil, a full-cost company, incurs the following costs during 2006:

During 2007, the following costs were incurred:
Delay rentals were paid on Leases A & B of \($2,000\) and \($3,000\) respectively.
In the latter half of 2007, 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 G&G costs-direct to Lease A $25,000 26,000 32,000 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