9. Dry Oil Company, a successful-efforts company, drilled an exploratory well offshore at a cost of $1 million. The well was dry, but Dry Oil felt that the G&G data obtained from the well was promising and drilled another well close to the first one. Should the first well be expensed or capitalized? 10. Dixie Company incurred the following costs during calendar year 2006: February 1 Cost of G&G activities to locate an oil prospect, $100,000 March 2 Acquisition costs for a 400-acre lease: lease bonus $50/acre; other costs incurred in acquiring the property, $1,000 May 30 Dry hole costs of an exploratory well, $315,000 June 28 Successful exploratory well costs, $405,000 August 15 Cost of production facilities such as flow lines and separators, $225,000 September 1 Production costs, $50,000 Prepare journal entries for the above transactions using the successful-efforts method of accounting.