Question 8 10 pt Spartan Oil Company drilled its first successful well on Lease A in 2006. Data for lease A as of 12/31/06 are as follows: Leasehold costs --------------$ 50,000 IDC of Well ------------------- 200,000 L&W equipment ----------------75,000 Production during 2006 -- 8,000 bb1 Total Estimated proved reserves 12/31/06-.......... 792,000 bbl Total reserves recoverable from well 12/31/06 -------102,000 bbl Compute the amortization for 2006