DelMar Petroleum is located in Houston, Texas. Data for DelMar Petroleum for 12/31/18 are as follows:

REQUIRED:

a. Compute DD&A using a common unit of measure based on BOE.

b. Compute DD&A using the unit-of-revenue basis.

c. Which would be the appropriate basis?

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Unrecovered costs.. Estimated future development costs for proved reserves Estimated future decommissioning costs related to future development costs.. Net salvage value of properties Proved reserves, 12/31/18.. Proved developed reserves, 12/31/18 Production during year.. Selling price during year. Selling price, 12/31/18...... Expected selling price, 2019... $700,000 100,000 200,000 60,000 Oil bbl 100,000 75,000 20,000 Gas Mcf 300,000 120,000 50,000 $100/bbl $5.00/Mcf 105/bbl 9.00/Mcf 106/bbl 10.00/Mcf