4. Both oil and gas are produced from BlowOut Oil Companys lease in Texas. Additional information, 1/1/07:

Unrecovered IDC (unamortized IDC) . . . . . . . . . . $900,000

Proved property costs, net . . . . . . . . . . . . . . . . . . . 100,000

L&W equipment, gross . . . . . . . . . . . . . . . . . . . . . 300,000 Beginning of year accumulated DD&A equipment . . . 50,000 Estimated proved reserves, 12/31/07

Oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 bbl Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 Mcf Production during 2007

Oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 bbl Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 Mcf Assuming the lease is fully developed, compute amortization:

a. assuming oil is the dominant mineral

b. using a common unit of measure based on BOE