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9. Wildcat Oil Company sold or used the gas produced on Lease A during March as follows: a. 600 Mcf used as fuel to operate

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9. Wildcat Oil Company sold or used the gas produced on Lease A during March as follows: a. 600 Mcf used as fuel to operate lease equipment b. 800 Mcf sold to R Company at $12/Mcf Assume a 1/7 RI and a production tax of 5%, and assume that the lease agreement has a free fuel clause, but production taxes still have to be paid according to state law. The selling price of gas is currently $12/Mcf. REQUIRED: Give the entries necessary to record the gas sold or used, assuming the onerator distributes taxes and royalty. Yummins

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