Big Tree Petroleum incurs G&G costs of $21,000 for Project Area 12. Three areas of interest are identified. Detailed G&G is conducted on the areas of interest at the following costs: 11ec7775_9925_73b7_9634_a7383cffc557_SM1710_00 As a result of the detailed G&G studies, the following leases were acquired: 11ec7775_9925_73b8_9634_59cdb59ba442_SM1710_00 Determine the tax basis of any assets and the amount of any tax deductions.

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

Edition 5ISBN: 9781630181031

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

Edition 5ISBN: 9781630181031

Exercise 2

Big Tree Petroleum incurs G&G costs of $21,000 for Project Area 12. Three areas
of interest are identified. Detailed G&G is conducted on the areas of interest at the
following costs:

As a result of the detailed G&G studies, the following leases were acquired:

Determine the tax basis of any assets and the amount of any tax deductions.

Explanation

Verified

Allocation of G G Cost in Determination ...