Question
In the current year, Sunshine Petroleum constructed an offshore drilling platform at a cost of $30,000,000. During the year, only 3 of the planned 12
In the current year, Sunshine Petroleum constructed an offshore drilling platform at a cost of $30,000,000. During the year, only 3 of the planned 12 wells have been drilled. Other data include:
Leasehold costs $250,000
Drilling costs $2,500,000
Platform costs $30,000,000
Proved reserves at end of year 1,500,000 bbl
Proved developed reserves at end of year 800,000 bbl
Production during current year 120,000 bbl
Calculate amortization of Leasehold costs for the year (round to nearest whole dollar, include $ and commas):
Calculate amortization of IDC & Equipment for the year (round to nearest whole dollar, include $ and commas):
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started