What is the comparative total income reported over the life of the asset for economic income versus accounting income for each Case?

Case 1: Change in projected cash inflows at t=1. In this scenario, Year 1 was exactly as expected but new information at t=1 results in an upward revision of future cash flows compared to the original (t=0) expectations. Actual Expectations as of t=1 1 2 3 4 5 Cash inflows from sale of oil 900 700 700 500 425 Extraction costs (cash costs) 300 200 200 230 250 Net cash flow 600 500 500 270 175 6 425 258 167 Fair mkt value at t $1,294 $923 $516 $297 $152 $0 Value of capital asset at t=0 Sales during the year Extraction costs incurred Less: Net cash flow "harvested" from well Add: Accretion of the discount (expected income) Add: Unexpected change in value of capital asset Economic income Value of capital asset at t=1 Base Case $1,500 (900) 300 (600) 150 Per Case 1 1,500 (900) 300 (600) 150 244 = 1294 - 1050 394 1,294 150 1,050 In Case 1, Yr 1 economic income is In Case 1, Yr 1 accounting income is $394 $350 = cash inflow - (FMVO - FMV1) = 600 - (1500 - 1294) = cash inflow - (BVO - BV) = 600 - (1500 - 1250) Actual Cash inflows from sale of oil Extraction costs (cash costs) Net cash flow 1200 400 800 300 100 200 Expectations as of t=1 3 4 600 450 200 230 400 220 5 400 250 150 6 400 258 142 Fair mkt value at t $868 $755 $431 $254 $129 $0 Value of capital asset at t=0 Less: Sales during the year Add: Extraction costs incurred Less: Net cash flow "harvested" from well Base Case $1,500 (900) 300 (600) Per Case 2 1,500 (1,200) 400 (800) 150 Add: Accretion of the discount Add: Unexpected cash inflow Less: Unexpected change in value of capital asset Economic income Value of capital asset at t=1 150 200 ($182) = 800 - 600 = 868 - 1050 150 1,050 168 868 In Case 2, Yr 1 economic income is In Case 2, Yr 1 accounting income is $168 $550 = cash inflow - (FMVO - FMV1) = 800 - (1500 - 868) = cash inflow - (BVO - BV1) = 800 - (1500 - 1250)