Big Texan Oil Co. obtains shooting rights coupled with an option to lease for $60,000 on 3,000
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Big Texan Oil Co. obtains shooting rights coupled with an option to lease for $60,000 on 3,000 acres owned by Dan Smith. The shooting rights are estimated at $5 per acre. Theoretically, the company should:
Debit G&G Expense for $15,000.
Debit G&G Expense for $45,000.
Debit G&G Expense for $60,000.
Debit Property Purchase Expense for $15,000.
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