9. At January 1, 2016, Knockout Petroleum has a 100% WI in a proved property (their...
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9. At January 1, 2016, Knockout Petroleum has a 100% WI in a proved property (their only Canadian property) comprising its own DD&A cost pool: Leashold cost 100,000 Accum DD&A-LHC (20,000) W&E - IDC 500,000 (200,000) Accum DD&A - W&E-IDC w&E - L&WE Accum DD&A - W&E-L&WE 300,000 (120,000) 560,000 Consider each of the following transactions independently (not sequential/ cumulative): If Knockout sells 30% of its working interest in the above property for $150,000, what is the gain or loss recorded? b. . and recovers $2,000 in scrap metal value, what is the journal entry to record the If Knockout retires a piece of equipment at this location originally costing $40,000 retirement? C. If Knockout abandons their Canadian operations entirely and recovers $60,000 in equipment, what is the journal entry to record the abandonment (you can prepare a summary entry, if you prefer)? 9. At January 1, 2016, Knockout Petroleum has a 100% WI in a proved property (their only Canadian property) comprising its own DD&A cost pool: Leashold cost 100,000 Accum DD&A-LHC (20,000) W&E - IDC 500,000 (200,000) Accum DD&A - W&E-IDC w&E - L&WE Accum DD&A - W&E-L&WE 300,000 (120,000) 560,000 Consider each of the following transactions independently (not sequential/ cumulative): If Knockout sells 30% of its working interest in the above property for $150,000, what is the gain or loss recorded? b. . and recovers $2,000 in scrap metal value, what is the journal entry to record the If Knockout retires a piece of equipment at this location originally costing $40,000 retirement? C. If Knockout abandons their Canadian operations entirely and recovers $60,000 in equipment, what is the journal entry to record the abandonment (you can prepare a summary entry, if you prefer)?
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Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
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