12. The Jones Oil Company started its oil and gas exploration and production business in 2005. During the year 2005 and 2006, the company provided the following information relating to leases located both in the U.S. and in Canada: Year Lease C (Canada) 2005 Leasehold costs Well Number IDC L&WE Lease A (U.S.) $ 40,000 Well 1 300,000 0 Lease B (U.S.) $ 30,000 Well 1 500,000 350,000 Proved Results Well dry, abandon well