Orion Petroleum operates exclusively in Wyoming. Balance sheet data for Orion as of 12/31/19 are as follows for Lease A:

Orion Petroleum’s activities during 2020 related to Lease A were as follows:

REQUIRED: Calculate DD&A for 2020, assuming Lease A constitutes a separate amortization base.

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Leasehold costs Less: Accumulated DD&A Net leasehold costs Wells and equipment-IDC....... Less: Accumulated DD&A-IDC. Net wells and equipment-IDC. Wells and equipment-L&WE.. Less: Accumulated DD&A-L&WE Net wells and equipment-L&WE $ 100,000 20,000 $ 80,000 .... $1,100,000 300,000 $ 800,000 $ 700,000 50,000 $ 650,000