The orange company acquired rights on West Texas block, block 3. Orange paid a $500,000 signing bonus to the government. 

a. what is the entry under U. S. GAAP? 

b. what is the entry under international GAAP? Orange company paid the government of West Texas $100,000 for an option on an offshore block for 90 days. If Orange negotiates an agreement for the block before the option expires and pays an additional $3,000,000 signing bonus. What is the entry under U.S. GAAP?

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