In 2016, Go Oil Company Incurred Costs of $8 Million

In 2016, Go Oil Company incurred costs of $8 million drilling oil wells. Thirty percent of the drilling resulted in oil being found. The rest of the drilling was unsuccessful. If Go uses the successful-efforts method of accounting, the oil and gas properties will be valued on the December 31, 2016 balance sheet at

A) $8,000,000.
B) $4,900,000.
C) $4,200,000.
D) $2,400,000.