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Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
Edition 5ISBN: 9781630181031Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
Edition 5ISBN: 9781630181031 Exercise 20
Mountain Petroleum had an exploratory well in progress at the end of 2018. Total costs
incurred by 12/31/18 were $300,000. During January 2019, drilling was continued, and
costs of $200,000 were incurred. Total depth was reached, and the well was determined
to be dry by the end of January. Assuming Mountain's financial statements are not
published until early February, what costs, if any, should be expensed for 2018 and
for 2019?
incurred by 12/31/18 were $300,000. During January 2019, drilling was continued, and
costs of $200,000 were incurred. Total depth was reached, and the well was determined
to be dry by the end of January. Assuming Mountain's financial statements are not
published until early February, what costs, if any, should be expensed for 2018 and
for 2019?
Explanation
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M petroleum had an exploratory well in p...
Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
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