Norton Energy decided to explore some acreage in Wyoming before acquiring any leases. Norton acquired shooting rights only on 10,000 acres owned by Mr. T for $1.00/acre. Norton obtained shooting rights coupled with an option to lease on 15,000 acres owned by Mr. H for $0.25/acre. After completing G&G surveys at a cost of $92,000, Norton decided to lease 1,000 acres from Mr. T, paying a bonus of $350/acre. Norton also decided to lease 1,500 acres from Mr. H, paying the same bonus of $350/acre. Norton’s income statement has seen better days, and although it will not help much, Norton decides to capitalize every possible cost.

REQUIRED: Give the entries.