8. Spartan Oil Company drilled its first successful well on Lease A in 2006. Data for lease A

as of 12/31/06 are as follows:

Leasehold costs $ 50,000

IDC of Well - 200,000

L&W equipment -75,000

Production during 2006 8,000 bbl

Total Estimated proved reserves 12/31/06 792,000 bbl

Total reserves recoverable from well 12/31/06 -102,000 bbl

Compute the amortization for 2006