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

Exercise 15

Duncan Oil Company, a successful efforts company, has capitalized costs on Property
R, Property S, and Property T as of 12/31/2017 as follows: Duncan has no other capitalized costs. The properties are located in different regions
in Venezuela.
REqUIRED: If necessary, test the assets for impairment and make any necessary
journal entries, assuming production costs tripled late in the year on all three properties
and that production costs are not expected to decrease.