Frontier Company, a successful efforts company, has a 1/6 royalty interest in an unproved property. Assume that
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Frontier Company, a successful efforts company, has a 1/6 royalty interest in an unproved property. Assume that Frontier Company’s net capitalized cost in the property is $200,000.
REQUIRED: Give the entry to record the sale of the entire royalty interest for:
a. $170,000
b. $220,000
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