I just need the sucessful efforts method for this!

Full Cost versus Successful Efforts Method During 2016, The Alberta Oil & Gas Company began an exploration project in Montana. The company had paid $500,000 for the drilling rights on a tract of 500 acres of land.

The company then spent another $40,000 building roads and containment ponds. The project called for 8 exploratory wells to be drilled at an expected cost of $100,000 per well.

The first 6 wells drilled were found to be dry (lacking commercially viable quantities of oil or gas); however, the last 2 wells drilled contained commercially viable quantities of oil condensate.

Consequently, 2 additional development wells were drilled at a cost of $120,000 per well.

(a) Calculate the capitalized cost of Albertas oil reserves under:

The full cost method	$Answer
The successful efforts method	$Answer