Data for Pride Oil Company for 12/31/06 are as follows:

a. Compute DD&A using a common unit of measure based on BOE.

b. Compute DD&A using the unit-of-revenue basis.

c. Which would be the appropriate basis?

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Unrecovered costs $700,000 Estimated future development costs for proved reserves .... 100,000 Estimated future dismantlement costs 200,000 Net salvage value of properties 60,000 Oil bbl Gas Mcf Proved reserves, 12/31/06 100,000 300,000 Proved developed reserves, 12/31/06 75,000 120,000 Production during year 20,000 50,000 Selling price during year $30/bbl $1.00/Mcf Selling price, 12/31/06 25/bbl 1.50/Mcf Expected selling price, 2007 27/bbl 2.00/Mcf