Company A and Company B both buy oil fields for drilling on December 1st of 2014 for the same price. Company A drills 10 wells and find that 2 wells have oil. Company B drills 10 wells and find that 2 wells have oil. Company A uses the full cost method and Company B uses the successful efforts method. As of December 31 2014, the wells have drilled, oil extraction starts in 2015. In 2015, both companies extract the same amount of oil and have the same oil production.

1. Which company has a higher debt to total assets ratio as of December 31 2014?

2. Which company has higher net income in 2015?

I'm pretty sure that the answer to 2 is A because the full cost method results in higher net income. Could somone please explain how the total debt to total assets ratio affects the full cost and successful efforts methods?