7. DelMar Petroleum is located in Houston, Texas. Data for DelMar Petroleum for 12/31/18 are as follows: Unrecovered costs .......... $700,000 Estimated future development costs for proved reserves .... 100,000 Estimated future decommissioning costs related to future development costs ...............! 200,000 Net salvage value of properties ........... 60,000 ........... Oil bbl Gas Mcf Proved reserves, 12/31/18 .... 100,000 300,000 Proved developed reserves, 12/31/18 ........... 75,000 120,000 Production during year. .. 20,000 50,000 Selling price during year .... $100/bbl $5.00/Mcf Selling price, 12/31/18. 105/bbl 9.00/Mcf Expected selling price, 2019............. 106/bbl 10.00/Mcf REQUIRED: a. Compute DD&A using a common unit of measure based on BOE. b. Compute DD&A using the unit-of-revenue basis. c. Which would be the appropriate basis? 0......... 7. DelMar Petroleum is located in Houston, Texas. Data for DelMar Petroleum for 12/31/18 are as follows: Unrecovered costs .......... $700,000 Estimated future development costs for proved reserves .... 100,000 Estimated future decommissioning costs related to future development costs ...............! 200,000 Net salvage value of properties ........... 60,000 ........... Oil bbl Gas Mcf Proved reserves, 12/31/18 .... 100,000 300,000 Proved developed reserves, 12/31/18 ........... 75,000 120,000 Production during year. .. 20,000 50,000 Selling price during year .... $100/bbl $5.00/Mcf Selling price, 12/31/18. 105/bbl 9.00/Mcf Expected selling price, 2019............. 106/bbl 10.00/Mcf REQUIRED: a. Compute DD&A using a common unit of measure based on BOE. b. Compute DD&A using the unit-of-revenue basis. c. Which would be the appropriate basis? 0