X Oil Company just completed its first year of operations and is considering using either the SE method or the FC method. During the year, X drilled 3 wells, 1 of which was an unsuccessful exploratory well. Determine which of the following is correct regarding X Companys first year financial statements.

Group of answer choices

The full cost method will show more assets and more net income for the first year.

The full cost method will show more assets and less net income for the first year.

The full cost method will show less assets and more net income for the first year.

The full cost method will show less assets and less net income for the first year.