Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright

تمرين 17

Tharp Energy Company, which uses the successful efforts method of accounting, owns
an individually significant lease, with a cost of $200,000. On December 31, 2017, the
lease is not considered impaired. However, prior to completion of the audit, a well on
adjacent property is abandoned as a dry hole, and the lease is now considered to be
40% impaired. Prepare any necessary adjusting entry.