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

تمرين 2

Opaque Corporation purchased land in fee for $420,000. The land was located in a
remote area in Oklahoma. An appraiser estimated the fair market value of the surface
rights to be $200,000. The appraiser was not able to make an estimate of the value of
the mineral rights.
Prepare a journal entry to record the purchase.