Woodland Oil Company incurred the following transactions during 2021 on Lease A (in the table). They follow the successful efforts method of accounting for oil and gas activities. There is a 5% royalty interest and Woodland handles all payments related to the lease. a. Provide the journal entries to record the acquisition, drilling and development costs incurred during the year. b. Provide the journal entries to record the sales of production and production costs during the year. C. Based on the transactions in a) and b), calculate DD&A on Lease A and provide the journal entries to record DD&A. d. Based on the transactions in a), b) and c), assess Lease A for impairment considering there was a significant decline in the price of oil. Provide any necessary journal entries to record impairment. e. On December 30, 2021, Woodland sold Lease A for $350,000. Based on the transactions in a), b), c) and d), provide the journal entry to record the sale. Leasehold costs $50,000 IDC $100,000 Lease and well equipment $250,000 Production during 2021 15,000 bbl Estimated sales price ($/bbl) $75 Estimated production costs ($/bbl) $20 State severance tax rate 5% Total estimated proved reserves, 12/31/21 900,000 bbl Estimated proved developed reserves, 12/31/21 175,000 bbl Expected undiscounted future net cash flow $325,000 Fair value (discounted net cash flow) $300,000 Woodland Oil Company incurred the following transactions during 2021 on Lease A (in the table). They follow the successful efforts method of accounting for oil and gas activities. There is a 5% royalty interest and Woodland handles all payments related to the lease. a. Provide the journal entries to record the acquisition, drilling and development costs incurred during the year. b. Provide the journal entries to record the sales of production and production costs during the year. C. Based on the transactions in a) and b), calculate DD&A on Lease A and provide the journal entries to record DD&A. d. Based on the transactions in a), b) and c), assess Lease A for impairment considering there was a significant decline in the price of oil. Provide any necessary journal entries to record impairment. e. On December 30, 2021, Woodland sold Lease A for $350,000. Based on the transactions in a), b), c) and d), provide the journal entry to record the sale. Leasehold costs $50,000 IDC $100,000 Lease and well equipment $250,000 Production during 2021 15,000 bbl Estimated sales price ($/bbl) $75 Estimated production costs ($/bbl) $20 State severance tax rate 5% Total estimated proved reserves, 12/31/21 900,000 bbl Estimated proved developed reserves, 12/31/21 175,000 bbl Expected undiscounted future net cash flow $325,000 Fair value (discounted net cash flow) $300,000