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Question 2 (Q2) Lucky Oil Company began operations on March 3, 2022, with the acquisition of a lease in Texas. During the first year, the
Question 2 (Q2) Lucky Oil Company began operations on March 3, 2022, with the acquisition of a lease in Texas. During the first year, the following costs were incurred, DD\&A (depreciation, depletion, and amortization) taken, and the following revenue was earned. - G&G costs $70000 - Acquisition costs 120000 - Exploratory dry holes . . . . . . . . 1500000 - Exploratory wells, successful . . . . . . 700000 - Development costs . . . . . . . . . 350000 - Production costs . . . . . . . . . . . 55000 - DD\&A expense . . . . . . . . . . 55000 (SE) 120000 (FC) - Revenue . . . . . . . . . . 1350,000 Required: 1- Prepare the income statement for Lucky oil company in two accounting method, successful efforts method and full cost method? (4 marks)
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