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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 13
In 2016, Beta Company purchased the working interest of an unproved lease for
$50,000. In 2017, Beta Company recognized impairment of $20,000 on this lease.
In 2018, Beta Company sold the entire working interest to Company Q for:
a. $25,000
b. $55,000
Assume instead that the property was assessed on a group basis and sold for:
c. $25,000
d. $55,000
Give the entry to record the sale in each of the above situations, assuming that Beta
Company is a successful efforts company.
$50,000. In 2017, Beta Company recognized impairment of $20,000 on this lease.
In 2018, Beta Company sold the entire working interest to Company Q for:
a. $25,000
b. $55,000
Assume instead that the property was assessed on a group basis and sold for:
c. $25,000
d. $55,000
Give the entry to record the sale in each of the above situations, assuming that Beta
Company is a successful efforts company.
Explanation
Verified
Verified
Successful efforts method
The corporati...
Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
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