Full Cost Accounting Version Successful Efforts Accounting Calculations: The following comprises the results of exploration efforts for an accounting year. These calculations help us understand why it is important to know the difference between successful efforts (SE) and full cost (FC) accounting.

Under successful efforts accounting, how much of the exploratory wells cost will be capitalized? Question 13 options:

A) $0 B) $9,000,000 C) $24,000,000 D) $33,000,000

Exploration Wells Drilled Drilling Costs ($000) $2,000 $8,000* Results Plugged and Abandoned+ 8 MM Barrel discovery wels Driledseoriling Costs (00 $7,0000 $6,000a 10,000 Total $33,000 Plugged and Abandoned 7 MM Barrel discovery 15 MM Barrel discovery Total =19 wellsp