Falcon Energy Corp. has the following financial information. Proved property cost (acquisition cost) $ 35,000 Drilling cost
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Falcon Energy Corp. has the following financial information. Proved property cost (acquisition cost) $ 35,000 Drilling cost incurred to date 450,000 Estimated selling price per bbl $80 Estimated lifting costs per bbl $35 State severance tax 6% Royalty interest percentage 14% Estimated total gross production 20,000 bbl What is the maximum completion cost, for which Falcon Energy Corp may consider completing the project?
A. $143,440.
B. $270,000.
C. $580,000.
D. $593,440
Related Book For
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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