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Assume Dylon Oil & Gas owns 100% of the working interest in the lease. During December 2019, 2,500 Mcf of gas was delivered to Tyler
- Assume Dylon Oil & Gas owns 100% of the working interest in the lease. During December 2019, 2,500 Mcf of gas was delivered to Tyler Oil Company. The sales price was $8.00/MMBtu and the state severance tax is 8%. Based on gas analysis the heating content is 1.03 Btu.
- What is the value of gas sales?
- What is the amount of revenue Dylon Oil & Gas should record?
- What amount should Dylon Oil & Gas record for royalties payable based on the Land Lease Agreement?
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Principles Of Financial Accounting (Chapters 1-17)
Authors: John Wild
25th Edition
1260780147, 9781260780147
