Given the following data for Gravity Oil Company: a. Give the entries to record the abandonment of

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Given the following data for Gravity Oil Company:

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a. Give the entries to record the abandonment of both Lease A and Lease B.

b. Give the entries assuming instead that both Lease A and Lease B were proved, i.e., oil or gas was discovered on the leases.

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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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Question Posted: May 29, 2024 08:01 AM

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Given the following data for Gravity Oil Company: a. Give the entries to record the abandonment of

Question:

Unproved property-Lease A (significant) Allowance for impairment-Lease A..... Unproved property-Lease B (insignificant) Allowance for impairment, group basis... $700,000 500,000 30,000 450,000

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Fundamentals Of Oil And Gas Accounting

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