Just answer no. 9

CHAPTER 8 Full Cost Accounting + 275 9. Indicate by a C whether the costs given below should be capitalized. Indicate by an I if the costs must be included in computing amortization or by an E if the cost may be excluded from amortization under full cost. Indicate by an I if the costs should be amortized under successful efforts. (U/P is unproved property, and P/P is proved property.) Costs to Costs to Amortize Cost Capitalize SE FC a. Bonus on unproved property FC SE P/P b. Bottom-hole contribution c. Ad valorem taxes, paid on U/P d. Legal costs for title defense. U/P e. Nondirect G&G, cumulative f. Delay rentals, cumulative g. Wells-in-progress h. Dry exploratory wells i. Successful exploratory wells j. Successful development wells k. Dry development wells 1. Abandoned costs m. Impairment of unproved properties n. Future development costs o. Estimated decommissioning costs 10. Data for Angleford Oil Company's US properties: I E Acquisition costs of unproved properties, net of impairment $100,000 Acquisition costs, proved properties. ...........six 150,000 Delay rentals, unproved properties-cumulative ...... 30,000 Delay rentals, proved properties-cumulative ... .. ... 50,000 Dry holes, proved properties..... . 300,000 Dry holes, unproved properties. 160,000 Abandoned costs . .. . . . . .. .. 40.000 Successful well costs. . . . . . . 400.000 Wells-in-progress-unproved properties. 175.000 Wells-in-progress-proved properties .... . . . .. .. 125,000 Major development project necessary to determine 500.000 quantity of proved reserves . . . .. . Future development costs (proved properties) .. . . . 300.000 (800,000) Accumulated DD&A. . ... .. 50.000 Production, barrels. . . . . .. . . . . Proved reserves, beginning of year, barrels 600.010