Bozeman Oil and Gas, a full cost company, has the following information available: Excluded from DD&A? \\"Y\\" if Yes 

Acquisition costs of unproved properties $1,000,000 

Nondrilling costs of unproved properties – specific 100,000 

Abandoned property costs 25,000 

Impairment of unproved properties 100,000

Dry holes on unproved properties 300,000 

Capitalized costs of proved properties 2,500,000

 Costs of major development project (not included above) 500,000 

Accumulated DD&A 750,000 

PV of future gross revenues 3,075,000 

PV of future related costs 1,250,000 

LCM of unproved properties being amortized 800,000 

Bozeman has elected to take all possible exclusions when calculating DD&A. 

Assume Bozemans accountant has already recorded DD&A for the year. 

Perform the full cost ceiling test to determine if an impairment is required. 

State your conclusion and why you arrived at that conclusion

Answer rating: 100% (QA)

Bozeman Oil and Gas is a full cost company This means that the company includes all costs associated ... View the full answer