Oil and Gas accounting - $1200,000 Gas (50,000*$5) $250,000...

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Oil and Gas accounting, 28/11/2011 Mubarakshina Karina, Id:20081679 Chapter 7, Ex 3 (b) Costs to be amortized : Unrecovered costs $700,000 + Estimated future development costs 100,000 + Estimated future decommissioning costs 200,000 - Net Salvage value of property 60,000 Total costs to amortize $ 940,000 Unit-of-Revenue Production: Oil (20,000*$60)
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Unformatted text preview: $1200,000 Gas (50,000*$5) $250,000 Total revenue $ 1450,000 Proved reserves: Oil (100,000*$70) $7000,000 Gas (50,000*$7,5) $2250,000 Total $ 9250,000 DD&A based on unit-of-revenue basis $940,000/($1450,000+$9250,000)*$1450,000 = $127,383.18 DD&A Expense $127,383.18 Accumulated DD&A $127,383.18...
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This note was uploaded on 12/14/2011 for the course ECON 104 taught by Professor Ismailov during the Spring '11 term at London College of Accountancy.

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Oil and Gas accounting - $1200,000 Gas (50,000*$5) $250,000...

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