Which of the following E&E costs would be classified as intangibles?
I $\quad$drilling rights
II $\quad$equipment inspection costs
III $\quad$exploration licenses
IV $\quad$capitalized consumable costs
A) I, II and III
B) II, III and IV
C) I, II and IV
D) I, III and IV

Question

Which of the following E&E costs would be classified as intangibles?
I $\quad$drilling rights
II $\quad$equipment inspection costs 
III $\quad$exploration licenses 
IV $\quad$capitalized consumable costs
A) I, II and III
B) II, III and IV
C) I, II and IV
D) I, III and IV

Quizplus · Accepted Answer

Drilling rights and exploration licenses are considered intangible assets as they represent rights or permissions rather than physical items. Capitalized consumable costs, while not typically intangible, can be considered part of the intangible asset if they are directly related to the acquisition of the intangible rights. Equipment inspection costs are generally not classified as intangibles.

Which of the Following E&E Costs Would Be Classified as Intangibles