Gusher Oil Company computes DD&A on a field-wide basis. Balance sheet data as of 12/31/05 for Gusher’s Macon field are as follows:

REQUIRED: Using BOE,

a. Calculate DD&A for 2006.

b. Calculate DD&A for 2006, assuming that part of the field, a proved property with gross acquisition costs of \($30,000\) and gross equipment cost of \($70,000\) and IDC of \($215,000,\) was abandoned during 2006.

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$ 200,000 $ 500,000 (100,000) 400,000 3,000,000 1,400,000 (1,300,000) 3,100,000 Unproved properties, net of impairment Proved properties Less: Accumulated DD&A Net proved properties Wells and related E&F-IDC Wells and related E&F-L&WE Less: Accumulated DD&A-Wells Net wells and related E&F Gusher's activities during 2006 were as follows: Unproved properties acquired. Delay rentals paid on unproved properties Test well contributions paid on unproved properties Title exams paid on unproved property...... Title defenses paid... $ 35,000 10,000 20,000 8,000 15,000