How would the royalty interest be divided among the rest of the expenses

Production . 900,000 bbl 100,000 bbl Payne Oil Company began operations during 2019. The following information is as of 12/31/19 and early 2020. Expense lifting costs as lease operating expense. Transactions, 2019 Lease A Lease B *a. Acquisition costs of unde-Royalty In tres Lease C veloped leases (1/8 RI) $ 60,000 *b. G&G costs Typeexp. $ 30,000 $ 40,000 60,000 200,000 Idc 50,000 90,000 *c. Drilling costs Type 2 exp 230,000 Ide 250,000 Id d. Drilling results: Drilling Drilling Drilling not completed completed; dry completed Proved reserves 700,000 bbl Proved developed reserves 300,000 bbl (as of 12/31) no $ so e. Production 10,000 bbl no entry f. Lifting costs $ 250,000 g. December 31 Recorded DD&A Impaired lease 40% 12\\ Transactions, 2020 h. Assume on January 2 of the second year (2020) that disaster struck both Lease A and Lease B. Give the entries to record abandonment of Lease A and Lease B. Assume equipment costing $15,000 was salvaged from Lease A. Assume this is not a post-balance sheet event that would give rise to changes in the balance sheets or income statements of previous years. *May combine entries for different leases. REQUIRED: From the data, (1) prepare entries, and (2) prepare an income statement for Payne Oil Company for 2019, assuming revenue to the company from oil sales is $1,200,000