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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 3
Foundation Oil Company owns a working interest in the Carpenter Lease in Texas. The
lease is burdened with a 3/16 royalty interest. During February, a total of 3,000 barrels
of oil is sold at $66/bbl to a refinery owned 100% by Foundation Oil. Assume the
severance tax rate is 5% in Texas.
REqUIRED: Prepare entries for the producer and the refinery purchaser.
lease is burdened with a 3/16 royalty interest. During February, a total of 3,000 barrels
of oil is sold at $66/bbl to a refinery owned 100% by Foundation Oil. Assume the
severance tax rate is 5% in Texas.
REqUIRED: Prepare entries for the producer and the refinery purchaser.
Explanation
Verified
Verified
FOC owns a working interest in the Carpe...
Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
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