QUESTION FOUR (4) (a) Kosmos Energy had the following data at end of its financial year ended 31st December, 2011. Capitalized cost at the end of year Accumulated amortization Reserves estimate at beginning of the year Production during the year Required: USD 1,700,000 USD 100,000 5,000,000 bbls 250,000 bbls Calculate and explain the accounting treatment of DD&A in the 2011 financial statement of Kosmos. [10 marks] 21D