The following information and account balances for the year 2020 relates to a proved property for Somia Oil Company who uses successful method approach Items 1/1/2020 31/12/2020 Unproved properties, net of impairment $200,000 Proved properties $500,000 Accumulated DD&A $200,000 $2,100,000 $800,000 $850,000 Wells and Equipment - IDC Wells and Equipment -LWE Accumulated DD&A-Wells and equipment During 2020 the following activities were completed Unproved properties acquired Delay rental fees Test well contributions paid Proved property reclassification Exploratory dry holes drilled Successful exploratory well drilled Development dry hole drilled Tanks, separators, etc. installed Development well in progress 12/31/2019 $50,000 $6,000 $30,000 $60,000 $300,000 $500,000 $350,000 $375,000 $160,000 Proved reserves Proved developed reserves Production during the year Oil (bbl) 500,000 900,000 50,000 Gas (Mct) 3,000,000 1.800,000 300,000 Wells and Equipment - IDC $2.100.000 Wells and Equipment - LWE $800,000 Accumulated DD&A-Wells and equipment $850,000 During 2020 the following activities were completed: Unproved properties acquired $50,000 Delay rental fees $6,000 Test well contributions paid $30,000 Proved property reclassification $60,000 Exploratory dry holes drilled $300,000 Successful exploratory well drilled $500.000 Development dry hole drilled $350,000 Tanks, separators, etc. Installed $375,000 Development well, in progress 12/31/2019 $160,000 Oil (bbl) Gas (Mcf) Proved reserves 500,000 3,000,000 Proved developed reserves 900,000 1.800,000 Production during the year 50,000 300,000 Assume that on March 1, 2020 a disaster struck the lease area and company abandoned the lease. The company salvaged $100,000 of the equipment cost. The journal entry to record this transaction include: O A. A debit to well and equipment of $ 3,275,000 OB. A debit to material and supplies(salvaged) of $232,727 OC A debit to proved property of $560,000 D. A debit to surrender lease expenses of $2,400,350