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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 18
Four companies own adjacent leases that share a common reservoir. The companies
each have a 100% working interest in their respective leases in which they have the
following investment:
The companies decide to unitize in order to obtain improved operating efficiency.
Following negotiations by engineers, geologists, and others, the following participation
factors and market values were agreed upon:
a. Determine equalization of investment and prepare entries for all the parties,
assuming all of the companies are successful efforts companies.
b. Give the entries, assuming Company D is a full cost company.
each have a 100% working interest in their respective leases in which they have the
following investment:
The companies decide to unitize in order to obtain improved operating efficiency.Following negotiations by engineers, geologists, and others, the following participation
factors and market values were agreed upon:
a. Determine equalization of investment and prepare entries for all the parties,assuming all of the companies are successful efforts companies.
b. Give the entries, assuming Company D is a full cost company.
Explanation
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Determine the Equalization of Investment...
Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright
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