Garvin Corporation incurred the following costs during calendar year 2019 in connection with Raupe Lease:

-Acquired the 600-acres Raupe lease at a lease bonus of $70/acre and other acquisition costs of $15,000.

-In addition to the above costs, the Company Incurred the following costs in connection with Raupe:

G&G costs to locate wellsite....$10,000

Surface damages.. ..40,000

Surface casing.20,000

Contractors fee-day rate... 350,000

Equipment rentals 400,000

Drilling fluids 70,000

Fuel.18,000

Drill bits 40,000

Cementing services..10,000

Casing crews.12,000

Roustabout labor..16,000

Hauiling and transportation..15,000

Production casing.72,000

Tank battery.22,000

Lines and connections..11,000

Pumping unit motor and accessories..100,000

Casinghead and connections13,000

Tubing..17,000

Separating and treating equipment14,200

Measuring equipment.600

Downhole pump and rods.11,200

Required:

a. Classify the costs in b into IDC and L&WE.

b. Record the above transaction assuming that the well was successful.

c. Record the above transaction assuming that the well was dry if the Company paid cost of $70,000 to plug and abandoned the hole.

Hint: to save your time, you can record the IDC and L&WE in total not for each cost.