Data as of 12/31/05 for Gusher Oil Company’s U.S. properties are as follows:

a. Use T accounts to accumulate costs.

b. Calculate DD&A for 2006, assuming no cost exclusions and using a common unit of measure based on BOE.

c. Calculate DD&A for 2006, assuming all possible cost exclusions and using a common unit of measure based on BOE. In addition, assume impairment for unproved properties was \($75,000\) and allowance for impairment was \($25,000\) at 12/31/06.

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Unproved properties, control W/P-unproved properties... Dry exploratory wells on unproved properties Abandoned costs of unproved properties Proved properties... Wells and related E&F Accumulated DD&A Gusher's activities during 2006 were as follows: Unproved properties acquired $ 200,000 350,000 425,000 275,000 190,000 600,000 375,000 $ 35,000