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

تمرين 4

Cameron Oil Company operates Leases X and Y. Cameron Oil transfers 50 barrels of
oil from Lease X to Lease Y to be used as fuel on Lease Y. The current spot oil price
is $66/bbl and the severance tax rate is 5%. Cameron owns 100% working interests in
Lease X and Lease Y. Lease X has a 1/8 royalty interest, and Lease Y a 3/16 royalty
interest.
REqUIRED: repare an entry for the transfer of the oil.