When there is an indication that a property's value has declined to an amount less than the purchase price, the unproved property should be 1. Impaired 2. Surrendered 3. Reclassified 4. All of the above xpenditures for drilling and development costs that have a salvage value re called: 1. Equipment costs 2. Intangible Drilling Cost (IDC) 3. None salvageable costs 4. Property costs Development G&G to select a drill site should be: 1. Expenses 2. Capitalized 3. A&b 4. None of the above Net carrying value of an unproved property equal to: 1. Acquisition Cost 2. Allowance for lease impairment 3. Acquisition Cost less Allowance for lease impairment 4. Acquisition Cost less Accumulated for lease impairment Book value of a proved property for the purposes of calculating DD&A expenses should be equal to : 1. The proved property cost 2. Proved property cost less accumulated DD&A expenses at the beginning of the year 3. Proved property cost less accumulated DD&A expenses at the end of the year 4. None of the above DD&A rate can be calculated as: 1. Book value / estimated reserve at beginning of period 2. Production of the year / estimated reserve at beginning of period 3. Production of the year / Book value 4. All of the above 7. When we make a completion decision, cost to be recovered should be: 1. Acquisition Cost 2. Estimated completion cost 3. Drilling costs 4. All of the above 8. When we make an investment decision for a lease, cost to be recovered should be include: 1. Acquisition cost 2. Estimated completion cost 3. Drilling actual cost 4. All of the above 9. Which of the following should not be IDC: 1. Cost of cement 2. Damages paid to landowner 3. Installation of Christmas Tree 4. Casing 10. Individually significant properties: 1. Can be assessed individually 2. Can be assessed on a group basis 3. Can calculate a net carrying value for each lease 4. 1&3 11. What is the proper accounting treatment for an exploratory dry well: 1. Charge to G&G expense 2. Charge to dry-hole-expense 3. Capitalize as unproved property 4. Capitalize as exploratory successful well 12. If the lease is fully developed, then: 1. The estimated proved reserve is equal to the estimated proved undeveloped reserve. 2. The estimated proved reserve is equal to the estimated proved developed reserve. 3. The estimated proved developed reserve is equal to the estimated proved undeveloped reserve. 4. The estimated proved reserve is equal to the estimated proved undeveloped reserve plus the estimated proved developed reserve