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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 9
A saltwater disposal system is added to Lease A's gathering system at a cost of
$150,000. The expense for the month of May 2016 is $15,000. Record the acquisition
cost and the monthly expense assuming the following:
Case A: The disposal system serves several wells on two different leases. There are
5 wells on Lease A and 10 wells on Lease B.
Case B: The disposal system serves only the wells on Lease A.
$150,000. The expense for the month of May 2016 is $15,000. Record the acquisition
cost and the monthly expense assuming the following:
Case A: The disposal system serves several wells on two different leases. There are
5 wells on Lease A and 10 wells on Lease B.
Case B: The disposal system serves only the wells on Lease A.
Explanation
Verified
Verified
CASE A
The cost of the gathering system...
Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
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