Question: Indicate by a C whether the costs given below should be capitalized. Indicate by an I if the costs must be included in computing amortization

Indicate by a C whether the costs given below should be capitalized. Indicate by an I if the costs must be included in computing amortization or by an E if the cost may be excluded from amortization under full cost. Indicate by an lif the costs should be amortized under successful efforts. (U/P is unproved property, and P/P is proved property.) Indicate by a dash, -, if the letters stated above do not apply. All items in the table below need a response of an C, I, E.or Costs to Capitalize SE FC Costs to Amortize FC SE P/P UP SE A Bonus on unproved property B Bottom-hole contribution C Ad valorem taxes, paid in U/P D Legal costs for title defense, U/P E Nondirect G&G, cumulative F Delay rentals, cumulative G Wells-in-progress H Dry exploratory wells I successful exploratory wells Costs to Amortize Costs to Capitalize SE FC FC SE PJPU/P SE A Bonus on unproved property B Bottom-hole contribution C Ad valorem taxes, paid in U/P D Legal costs for title defense, U/P E Nondirect G&G, cumulative F Delay rentals, cumulative G Wells-in-progress H Dry exploratory wells I successful exploratory wells J Successful development wells K Dry development wells L Abandoned Costs Impairment of unproved properties N Future development costs Estimated decommissioning costs Indicate by a C whether the costs given below should be capitalized. Indicate by an I if the costs must be included in computing amortization or by an E if the cost may be excluded from amortization under full cost. Indicate by an lif the costs should be amortized under successful efforts. (U/P is unproved property, and P/P is proved property.) Indicate by a dash, -, if the letters stated above do not apply. All items in the table below need a response of an C, I, E.or Costs to Capitalize SE FC Costs to Amortize FC SE P/P UP SE A Bonus on unproved property B Bottom-hole contribution C Ad valorem taxes, paid in U/P D Legal costs for title defense, U/P E Nondirect G&G, cumulative F Delay rentals, cumulative G Wells-in-progress H Dry exploratory wells I successful exploratory wells Costs to Amortize Costs to Capitalize SE FC FC SE PJPU/P SE A Bonus on unproved property B Bottom-hole contribution C Ad valorem taxes, paid in U/P D Legal costs for title defense, U/P E Nondirect G&G, cumulative F Delay rentals, cumulative G Wells-in-progress H Dry exploratory wells I successful exploratory wells J Successful development wells K Dry development wells L Abandoned Costs Impairment of unproved properties N Future development costs Estimated decommissioning costs
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
