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

Exercise 18

Data for Dora's U.S. properties: For the column headed I above, assume all possible costs are included in the
amortization base. For the column headed E, assume all possible costs are excluded
from the amortization base. Place an I in the columns above if a cost must be
included in amortization. Place an E in the columns above if the cost may be
excluded from amortization.
Calculate DD&A assuming the following:
a. Inclusion of both unproved property costs and the major development project.
b. Exclusion of both unproved property costs and the major development project.
c. Inclusion of unproved property costs and exclusion of the major
development project.
d. Exclusion of unproved property costs and inclusion of the major
development project.
e. How would impairment for unproved properties have been handled?