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On February 19, 2022 Big Deal Oil Company acquires a lease from landowner Garza with a lease bonus of $1,200 an acre for 600 acres.

On February 19, 2022 Big Deal Oil Company acquires a lease from landowner Garza with a lease bonus of $1,200 an acre for 600 acres. Other legal and acquisition costs amounted to $4,500 for the lease.Record the capitalized cost of the lease. Assume the credit is to accounts payable.

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