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

تمرين 15

The Kincaid Oil Company has unproved property costs of $40,000 at January 1, 2016.
During 2016, Kincaid incurred $400,000 drilling costs on Lease A. An 8%, $500,000
note is outstanding during the entire year and was obtained to finance the drilling
program. Compute the interest capitalization amount and record the interest.