4. Universal Oil Company obtained the rights to shoot 25,000 acres at a cost of 50.20/ acre on May 3, 2007. Universal contracted and paid $80,000 for a reconnaissance survey during 2007. As a result of this broad exploration study, Lease A and Lease B were leased on January 9, 2008. (Ignore acquisition costs.) The two properties totaled 1,500 acres, and each had a delay rental clause requiring a payment of $2 per acre if drilling was not commenced by the end of each full year during the primary term. Detailed surveys costing a total of $30,000 were done during January and February on the leases, During July, Universal entered into two test-well contribution agreements: a bottomhole contribution agreement for $15,000, with a specified depth of 10,000 feet, and a dry-hole contribution of $20,000, also with a specified depth of 10,000 feet. In November both wells were drilled to 10,000 feet. The well with the bottom-hole contribution was successful, but the well with the dry-hole contribution was dry. The cost for maintaining land and lease records allocated to these two properties for 2008 was $2,000. Ad valorem taxes were assessed on Universal's economic interest in both properties, amounting to $2,500 for 2008 . After preparing their financial statements for 2008 , Universal decided to delay drilling on these properties until sometime in 2010. On April 15, 2010, enough money was left after paying taxes for a well to be drilled on Lease B. Before drilling the well, costs of $7,000 were incurred to successfully defend a title suit concerning Lease B. Give all entries necessary to record these transactions. Assume any necessary delay rental payments were made