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Taif Oil Company, uses successful cost approach, decided to explore some acreage in Eastern side of KSA before acquiring any leases. Taif obtained shooting rights

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Taif Oil Company, uses successful cost approach, decided to explore some acreage in Eastern side of KSA before acquiring any leases. Taif obtained shooting rights only for $20,000 on 4,000 acres owned by Leen and obtained shooting right coupled with an option to lease for $40,000 on 5,000 acres owned by Ghadeer. The entry to record the leasing of only 2,500 acres from Ghadeer assuming that $40,000 is apportioned between the option and the shooting rights include: A. A debit to unproved property of $20,000 B. A debit to property purchase suspense of $7,500 C. A credit to cash of $12,500 D. A debit to G&G expenses of $20,000

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