Martinson Oil Company provides the following information for the year ended

December $31,2021,$ relating to its properties located in the United States:

PV of future gross revenues. $..........................$ $$70,000,000$

PV of future related costs. $...........................15,000,000$

Capitalized costs of proved properties $..................65,000,000$

Unproved properties not being amortized $................................................$

Accumulated DD&A $..................................(4,000,000)$

REQUIRED:

a$.$ Prepare a ceiling test and an entry, if necessary, for the write$-$off of

capitalized costs. Ignore income taxes.

b$.$ Assuming the PV of future gross revenues is $$80,000,000,$ repeat the

requirements for part a$.$