• ExxonMobil Corporation invested $8 billion in a new oil exploration project. The company reported the following financial information:
  • Investment in Oil Exploration: $8 billion
  • Total Assets: $350 billion
  • Total Liabilities: $180 billion
  • Net Income: $14 billion

• Requirements:
  1. Calculate ExxonMobil's total assets after accounting for the investment in the oil exploration project.
  2. Prepare a balance sheet reflecting the investment in the new project and adjusted total assets.
  3. Analyze the impact of the investment on ExxonMobil's financial leverage.
  4. Discuss the accounting treatment of investments in exploration projects in ExxonMobil's financial statements.
  5. Evaluate the potential return on investment from ExxonMobil's new oil exploration project.