Revenue and costs for Gravity Petroleum for the year 2020 are presented below: Revenue G&G costs...

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Revenue and costs for Gravity Petroleum for the year 2020 are presented below: Revenue G&G costs Acquisition costs Exploratory dry holes Successful exploratory wells Development wells, dry Development wells, successful Production facilities Production costs Amortization for 2020 Accumulated DD&A Successful Efforts $200,000 500,000. $ 600,000 600,000 2,000,000 4,000,000 3,000,000 1,000,000 800,000 700,000 100,000 Full Cost $ 400,000 700,000 Required: Prepare income statements and unclassified balance sheets for a successful efforts (SE) company and a full cost (FC) company and explain the difference in net income. Revenue and costs for Gravity Petroleum for the year 2020 are presented below: Revenue G&G costs Acquisition costs Exploratory dry holes Successful exploratory wells Development wells, dry Development wells, successful Production facilities Production costs Amortization for 2020 Accumulated DD&A Successful Efforts $200,000 500,000. $ 600,000 600,000 2,000,000 4,000,000 3,000,000 1,000,000 800,000 700,000 100,000 Full Cost $ 400,000 700,000 Required: Prepare income statements and unclassified balance sheets for a successful efforts (SE) company and a full cost (FC) company and explain the difference in net income.

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To prepare the income statements and unclassified balance sheets for a successful efforts SE company and a full cost FC company we need to consider th... View the full answer