LWE means lease and well equipment

Khawlah Energy Inc., uses successful cost approach, had the following costs incurred during the year. ? ? Acquired 1,000 acres lease at a lease bonus of $50/acre and other acquisition cost of $30,000 Paid a drilling contractor as follows: The contract specified that the well to be drilled to a depth of 15,000. The payment is to be paid at a day rate of $5,000 per day The drilling started on March 12 and reached 15,000 feet on March 26 Equipment rental, drilling Drilling water, fuel, power, lubricants Drilled pipe Location and road preparation Labor for installing Christmas tree Mud Tubing Cementing services Casing installation crews Surface casing Christmas tress Flow lines and tanks $12,000 $25,000 $15,000 $8,000 $10,000 $20,000 $30,000 $12.000 $20,000 $40,000 $10,000 $50,000 feet on March 26 Equipment rental drilling Drilling water, fuel, power, lubricants Drilled pipe Location and road preparation Labor for installing Christmas tree Mud Tubing Cementing services Casing installation crews Surface casing Christmas tress Flow lines and tanks $12,000 $25,000 $15.000 $8,000 $10,000 $20,000 $30,000 $12,000 $20,000 $40,000 $10,000 $50,000 How much should the company record as LWE cost for the year? O A $ 225,000 OB. $ 157,000 OC. $ 165,000 OD$ 145,000