Required: Parts A & B

The Flanders Oil Company gives you the following cost information: Unproved properties 300,000 WIP - unproved properties 300,000 WIP - proved properties 150,000 Unproved properties - dry exploratory wells 400,000 Proved properties 250,000 W&E 300,000 Abandoned costs 60,000 Unproved properties acquired 50,000 Delay rental payments 51,000 Unproved properties proved in 2020 200.000 Exploratory dry hole 150,000 Exploratory successful wel 200.000 Developmental dry hole 250,000 Developmental successful weil 250,000 Tanks and separators 150 000 Total costs incurred in 2021 3,060 000 Accumulated DD&A (January 1, 2021) Successful efforts Proved Property 50 000) WBE (250 000 (750.000) Accumulated DOBA Vanuary 1 2023) Full Cost Estimated future development cost Proved Property (50,000) W&E (250,000) Accumulated DD&A (January 1, 2021) Full Cost (750,000) Estimated future development costs 500,000 The company produced 100,000 barrels of oil in 2021. The petroleum engineers estimated the following reserves at December 31, 2021: Proved: 1,000,000 barrels of oil Proved developed: 600,000 barrels of oil a. Required: Calculate DD&A for 2021 under successful efforts accounting. b. Calculate DD&A for 2021 under full cost accounting assuming Flanders elects not to exclude any cost. The Flanders Oil Company gives you the following cost information: Unproved properties 300,000 WIP - unproved properties 300,000 WIP - proved properties 150,000 Unproved properties - dry exploratory wells 400,000 Proved properties 250,000 W&E 300,000 Abandoned costs 60,000 Unproved properties acquired 50,000 Delay rental payments 51,000 Unproved properties proved in 2020 200.000 Exploratory dry hole 150,000 Exploratory successful wel 200.000 Developmental dry hole 250,000 Developmental successful weil 250,000 Tanks and separators 150 000 Total costs incurred in 2021 3,060 000 Accumulated DD&A (January 1, 2021) Successful efforts Proved Property 50 000) WBE (250 000 (750.000) Accumulated DOBA Vanuary 1 2023) Full Cost Estimated future development cost Proved Property (50,000) W&E (250,000) Accumulated DD&A (January 1, 2021) Full Cost (750,000) Estimated future development costs 500,000 The company produced 100,000 barrels of oil in 2021. The petroleum engineers estimated the following reserves at December 31, 2021: Proved: 1,000,000 barrels of oil Proved developed: 600,000 barrels of oil a. Required: Calculate DD&A for 2021 under successful efforts accounting. b. Calculate DD&A for 2021 under full cost accounting assuming Flanders elects not to exclude any cost