U W Culu the transfer. 18. Todd Lease on the lease. odor willing to stination (ie, the The Todd Lease is operated by Tyler Corporation. The foreman of the Toda must make a decision regarding the replacement of a pumping unit on the The foreman has identified three possible alternatives: Alternative / Purchase a new pumping unit. The foreman has located a vendor will sell the unit needed for a delivered cost of $65,000 FOB destination manufacturer pays freight to the destination point). Alternative 2 The Odessa Lease, which is also operated by Tyler Corporation, has a surplus pumping unit that could be used. If the Odessa Lease equipment is used, the Odessa Lease would be charged with the cost of repairing the uni that would then be transferred to the Todd Lease at Condition B. Alternative 3 The Midland Lease, which is also operated by Tyler Company, has a surplus pumping unit that could be used. If the Midland Lease pumping unit is used the equipment would be transferred unrepaired at Condition C. CHAPTER 14 Joint Interest Accounting 553 Other information: Tyler's Working Interest Unit Repair Costs Todd Lease 100% n/a Odessa Lease 60% $10,000 Midland Lease 30% 5,000 The current market price for the unit is $70,000. Trucking Costs S 0 2,000 3,000 REQUIRED: Determine what the foreman on the Todd Lease should do U W Culu the transfer. 18. Todd Lease on the lease. odor willing to stination (ie, the The Todd Lease is operated by Tyler Corporation. The foreman of the Toda must make a decision regarding the replacement of a pumping unit on the The foreman has identified three possible alternatives: Alternative / Purchase a new pumping unit. The foreman has located a vendor will sell the unit needed for a delivered cost of $65,000 FOB destination manufacturer pays freight to the destination point). Alternative 2 The Odessa Lease, which is also operated by Tyler Corporation, has a surplus pumping unit that could be used. If the Odessa Lease equipment is used, the Odessa Lease would be charged with the cost of repairing the uni that would then be transferred to the Todd Lease at Condition B. Alternative 3 The Midland Lease, which is also operated by Tyler Company, has a surplus pumping unit that could be used. If the Midland Lease pumping unit is used the equipment would be transferred unrepaired at Condition C. CHAPTER 14 Joint Interest Accounting 553 Other information: Tyler's Working Interest Unit Repair Costs Todd Lease 100% n/a Odessa Lease 60% $10,000 Midland Lease 30% 5,000 The current market price for the unit is $70,000. Trucking Costs S 0 2,000 3,000 REQUIRED: Determine what the foreman on the Todd Lease should do