Q:Fundamentals of Oil & Gas Accounting Chapter 7 Question 9.d.

The following are costs incurred on Erath lease: Acquisition costs $ 100,000 Well I costs 2,250,000 Well 2 costs 3,000,000 Well 3 costs 2,750,000 Tanks, separators, flow lines, etc. 1.000.000 REQUIRED: Treat each of the following independently:

9.d.Give the entry to record abandonment of the entire Erath lease, assuming instead that amortization had been computed on a field-wide basis with accumulated DD&A on leasehold costs of 300,000 and accumulated DD&A on wells and equipment of $18,000,000.