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1.3. Company A holds 22.5% of working interest, with the landowner retaining 20% of royalty and lease brokers holding 2.5% of overriding royalty interest. How

image text in transcribed 1.3. Company A holds 22.5% of working interest, with the landowner retaining 20% of royalty and lease brokers holding 2.5% of overriding royalty interest. How much net revenue interest does company A own? (5 pts) WI=0.225 Royalty = 0.2 Overriding Royalty = 0.025 NRI WIX (100% - Royalty -Overridin = =0.225x (1-0.2-0.025)=0 1.4. From the cash flow table below, answer the following questions. Year Revenue Expenses Investment Taxable Income M$ M$ M$ MS 1 3,000 500 2 2,000 400 3 1,500 360 4 1,000 320 5 900 280 6 800 200 3000 Total 9200 1.4.1.If a total amount of investment of $3,000,000 is depreciated with Units-of-Production method over the assumed life in financial model, what is the amount of taxable income for year 1? (Assume constant oil price) (10 pts) VOP: Production % = revenue yr l total revenue 11 3000 = 0.326 9200

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