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calculate the DD&A of leasehold and wells and equipment. Question 6 Following are information related to East Oil Company for years 2018 and 2019: Unproved

image text in transcribedcalculate the DD&A of leasehold and wells and equipment.

Question 6 Following are information related to East Oil Company for years 2018 and 2019: Unproved property proved during 2019 Allowance for impairment, unproved property (31/12/2018) DD&A Expense-leasehold (31/12/2018) DD&A Expense-wells (31/12/2018) Wells-in-progress- IDC (2019) Wells & equipment -IDC (2019) Wells & equipment- L&WE (2019) Production (2019) Proved reserves (31/12/2019) Proved developed reserves (31/12/2019) $200,000 80,000 1,318 43,548 100,000 1,800,000 730,000 60,000bb1 2,940,000 bbl 1,940,000 bbl Calculate DD&A of leasehold and wells and equipment for 2019. (7 marks)

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