Al Kawthar Company has oil and gas properties located only in the United States. Data for Al Kawthar Companyas of December 31, 2020, are as follows:Cost to be amortized37,500,000Production during 2020Oil19,000,000 bbl18,000,000 MctGasProved reserves, 31/12/20OilGas14,000,00032,000,000 McfbblSelling price at 31/12/20Oil120 bbl20 MctGasAverage selling price during 2020Oil110 bbl12 MctGasCompute the DD&A based on unit-of-revenue for 2020. Show ALL workings.

Given: - Particulars Amount ($) Book value 37,500,000 Production during 2020: Oil 19,000,000…

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 Gas 18,000,000 Mat Proved reserves. 31/12/20 Oil Gas 14,000,000 32,000,000 Mcf bbl Selling price at 31/12/20 Oil Gas 120 bbl 20 Mcf 24 Average selling.price during 2020 Oil 110bbl 12 Mcf Gas Compute the DD&A based on unit-of-revenue for 2020. Show ALL workings.

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 Gas 18,000,000 Mat Proved reserves. 31/12/20 Oil Gas 14,000,000 32,000,000 Mcf bbl Selling price at 31/12/20 Oil Gas 120 bbl 20 Mcf 24 Average selling.price during 2020 Oil 110bbl 12 Mcf Gas Compute the DD&A based on unit-of-revenue for 2020. Show ALL workings.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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