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

Exercise 15

Complex Corporation started operations on 1/1/15. At 12/31/15, the company owned
the following leases in Canada: The production was sold at $70/bbl and $5.50/Mcf. Current prices at 12/31/15 are $75/
bbl and $6.00/Mcf.
Compute DD&A for Canada, assuming the following:
a. No exclusions from the amortization base, and using unit-of-production converted
to a common unit of measure based on energy (equivalent Mcf).
b. No exclusions from the amortization base, and using unit-of-revenue method.
c. All possible costs are excluded from amortization, and using a common unit of
measure based on energy (equivalent Mcf).
d. All possible costs are excluded from amortization, and using
unit-of-revenue method.