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Balance sheet data for Gusher Oil Company as of 12/31/29 is as follows for Lease Z: Leasehold costs $750,000 Less: Accumulated DD&A ($270,000) Net leasehold

Balance sheet data for Gusher Oil Company as of 12/31/29 is as follows for Lease Z:



Leasehold costs

$750,000

Less: Accumulated DD&A

($270,000)

Net leasehold costs

$480,000

Wells and related E&F—IDC

$3,600,000

Less: Accumulated DD&A—IDC

($1,550,000)

Net wells and related E&F—IDC

$2,050,000

Wells and related E&F—L&WE

$2,000,000

Less: Accumulated DD&A—L&WE

($300,000)

Net wells and related E&F—L&WE

$1,700,000

Gusher’s activities during 2030 related to Lease Z were as follows:



Exploratory dry hole drilled

$900,000

Development dry hole drilled

$980,000

Tanks, separators, etc., installed

$370,000

Production

360,000 bbl

Proved reserves, 12/31/30

3,600,000 bbl

Proved developed reserves, 12/31/30

3,300,000 bbl

Requirement:
 Calculate the Working Capital for 2030.

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