Compute the DD&A based on equivalent energy units for 2020. Show ALL workings

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 29CE
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Al Kawthar Company has oil and gas properties located only in the United States. Data for Al Kawthar Company
as of December 31, 2020, are as follows:
Cost to be amortized
37,500,000
Production during 2020
Oil
19,000,000 bbl
18,000,000 Mcf
Gas
Proved reserves. 31/12/20
Oil
14,000,000 bbl
Gas
32,000,000 Mct
Solling price at 31/12/20
Oil
120 bbl
Gas
20 Mcf
Average selling.price during 2020
Oil
110 bbl
Gas
12 Mcf
Compute the DD&A based on equivalent energy units for 2020. Show ALL workings.
Transcribed Image Text:Al Kawthar Company has oil and gas properties located only in the United States. Data for Al Kawthar Company as of December 31, 2020, are as follows: Cost to be amortized 37,500,000 Production during 2020 Oil 19,000,000 bbl 18,000,000 Mcf Gas Proved reserves. 31/12/20 Oil 14,000,000 bbl Gas 32,000,000 Mct Solling price at 31/12/20 Oil 120 bbl Gas 20 Mcf Average selling.price during 2020 Oil 110 bbl Gas 12 Mcf Compute the DD&A based on equivalent energy units for 2020. Show ALL workings.
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