Wildcat Oil Company began operations on 1/5/2021 and has acquired only two properties. The two properties, which are both considered significant, are located in different states. Lease B was proved on 1/1/2023. Costs incurred from 1/5/2021 through 12/31/2023 are as follows:

Other information:
The company also owns a building that it purchased 1/1/2021 at a cost of $500,000. The building houses the corporate headquarters and has an estimated life of 20 years (ignore salvage). The operations conducted in the building are general in nature and are not directly attributable to any specific exploration, development, or production activities. Since the building is not related to exploration, development, or production, it is depreciated using straight-line depreciation for financial accounting.

REQUIRED:

a. Give the entry to record DD&A for 2023 under full cost accounting, assuming all possible costs are excluded from amortization.

b. Give the entry to record DD&A for 2023 under successful efforts accounting.

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Seismic studies, nondirect Bonus ... Title exams.. G&G costs, direct. Test-well contributions. Insurance..... Exploratory dry holes-IDC. Exploratory dry holes L&WE. Exploratory wells-in-progress-IDC. Exploratory wells-in-progress-L&WE... Wells and equipment-IDC.. Wells and equipment-L&WE Tanks and separators.. Lease operating costs Total Lease A Lease B Unallocated $70,000 $ 50,000 $ 60,000 10,000 5,000 90,000 80,000 15,000 18,000 2,000 3,000 220,000 250,000 30,000 40,000 100,000 180,000 22,000 19,000 700,000 260,000 110,000 134,000 $539,000 $1,859,000 $70,000