Johnson Oil & Gas sold 12,500 BBLs of oil for the year 2018 at a price per BBL of $48. Revenues and costs
for Johnson Oil & Gas are presented below:
Revenue	$ 825,000
G&G Costs	$ 650,000
Acquisition Costs	$ 1,500,000
Exploratory dry holes	$ 3,000,000
Successful exploratory wells	$ 5,000,000
Development wells, dry	$ 900,000
Development wells, successful	$ 735,000
Production facilities	$ 610,000
Production costs	$ 200,000
	Successful Efforts
Amortization for 2018	$ 200,000
Accumulated DD&A	$ 500,000
Required:
Prepare income statements and unclassified balance sheet for both an SE and FC company, explain the
difference in net income.