Greene Company sold its 100% WI in a proved property for $700,000 and retained an ORI. Greenes
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Greene Company sold its 100% WI in a proved property for $700,000 and retained an ORI. Greene’s net cost basis in the property was $450,000. The fair market value of the entire original working interest was $900,000.
Greene had the following net investment in its accounts:
REQUIRED: Prepare Greene Company’s entry to record the sale, assuming Greene is a successful efforts company.
Transcribed Image Text:
Greene had the following net investment in its accounts: Leasehold.... IDC..... Equipment Total... $ 50,000 300,000 100,000 $450,000
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