1. If the accretion expense at the end of 2021 is $20,946, what will be the accretion expense at the end of 2022 (all other variables remain the same)? Assume the credit-adjusted risk-free rate used to compute the expected present value is 10%. $__________

2.

If the accretion expense at the end of 2021 is $20,946, what will be the accretion expense at the end of 2022 (all other variables remain the same)? Assume the credit-adjusted risk-free rate used to compute the expected present value is 10%. $__________

3.

A(n) ______________ is a cleaning or scraping instrument sent through a pipeline.

		Scratcher
		Swab
		Boll weevil
		Go-devil
		Thief

4. An oil company pays a contract of $55,000 for soil testing and removal of contaminated soil from the gas plant site. What account would be debited? ___________________

5.

Companies are not required to re-measure their AROs at fair value each year following the initial recognition of AROs.

True

False

6. A change in the discount rate should result in the re-estimation of AROs.

True

False

7. An impairment booked in 2022 can be partially or fully reimbursed in a future year under certain circumstances under U.S. GAAP.

True

False

8.

Cold Oil Company has several unproved blocks in the Gulf of Mexico. Cold chooses to group these blocks for the purposes of assessing impairment. Based on past experience, Cold believes that the group should be 30 percent impaired. The capitalized gross costs for these properties total $80,000,000 and at year-end (before adjustment) there is an allowance for impairment for the group with a credit balance of $16,000,000. Which is a correct entry under Successful Efforts (SE)?

		Allowance for Impairment - Gulf (credit) $8 million
		Impairment Expense (credit) $6 million
		Allowance for Impairment - Gulf (credit) $9 million
		Impairment Expense (debit) $24 million
		Allowance for Impairment - Gulf (credit) $24 million

9. A decision to expense or capitalize a cost for financial statement purposes (FASB or PCAOB) has a significant impact on whether the term is expensed or capitalized in determining taxable income for tax purposes.

True or False

Answer rating: 100% (QA)

If the accretion expense at the end of 2021 is 20946 what will be the accretion expense at the end of 2022 all other variables remain the same Assume the creditadjusted riskfree rate used to compute t... View the full answer