During 2022 the exploration department ofBubblinCrude Oil Corporation incurred the following costs in exploring theWolfcampbasin. Give the entries:

a.Shooting rights12,000

b.Bottom-hole contribution40,000

c.Supplies for exploration (G&G) activities8,000

d.Salaries for exploration (G&G) activities100,000

e.Mapping costs for exploration (G&G) activities15,000

f.Depreciation of exploration equipment20,000

g.Transportationof seismic crew5,000

h.Operating costs for exploration (G&G) equipment3,000

3.Discuss why each party to a test-well contribution situation would enter into the transaction.