The costs of drilling an unsuccessful well are expensed under

Question

Quizplus · Accepted Answer

The successful-efforts method only capitalizes costs related to successful wells and expenses the costs of unsuccessful wells immediately. The full-cost method, on the other hand, capitalizes all costs, both successful and unsuccessful, and depreciates them over time. Therefore, the costs of drilling an unsuccessful well would be expensed under the successful-efforts method.

The Costs of Drilling an Unsuccessful Well Are Expensed Under