An oil company in New Brunswick has a licence to operate an oil well that has just
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Question:
An oil company in New Brunswick has a licence to operate an oil well that has just started producing. The company expects to extract 424,400 barrels of oil this year and the total oil reserves are estimated to be 4,244,000 barrels. Their capitalized costs for the licence are $12,732,000.
Using units-of-production method, calculate how much of this expense they will report this year(amortization expense)?
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
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