Us Oil Company acquired property rights to search for natural resources on land that it is convinced
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Us Oil Company acquired property rights to search for natural resources on land that it is convinced has oil reserves, for $15,418,620. The contract requires that Oriole restore the property to a status usable for a park after drilling and extraction are complete. The estimated cost of this restoration is $2,363,000. Oriole incurs exploration costs of $1,335,000 and intangible development costs of $1,770,000. Geological surveys suggest that approximately 1,113,000 barrels of oil can be extracted from the site. In 2025, Oriole extracts 248,000 barrels of oil.
What journal entry is required to record the extraction of the oil for the first year?
Related Book For
Project management the managerial process
ISBN: 978-0073403342
5th edition
Authors: Eric W Larson, Clifford F. Gray
Posted Date: