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Balance sheet data for Mars Petroleum as of 12/31/10 is as follows for Lease G: Leasehold costs $275,000 Less: Accumulated DD&A ($80,000) Net leasehold costs

Balance sheet data for Mars Petroleum as of 12/31/10 is as follows for Lease G:



Leasehold costs

$275,000

Less: Accumulated DD&A

($80,000)

Net leasehold costs

$195,000

Wells and related E&F—IDC

$1,700,000

Less: Accumulated DD&A—IDC

($600,000)

Net wells and related E&F—IDC

$1,100,000

Wells and related E&F—L&WE

$1,000,000

Less: Accumulated DD&A—L&WE

($110,000)

Net wells and related E&F—L&WE

$890,000

Mars’ activities during 2011 related to Lease G were as follows:



Exploratory dry hole drilled

$425,000

Development dry hole drilled

$450,000

Tanks, separators, etc., installed

$180,000

Production

170,000 bbl

Proved reserves, 12/31/11

1,700,000 bbl

Proved developed reserves, 12/31/11

1,400,000 bbl

Requirement:
 Calculate the Development Costs for 2011.

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