Carrolton Oil and Gas, an independent oil and gas producer, is approved to use a 20% of gross income depletion allowance. The write-off last yearwas $700,000 on its horizontal directional drill wells. Determine the estimated total reserves in barrels, if the volume pumped last year amounted to 1% of the total and the delivered-product price averaged $75 per barrel.
Carrolton Oil and Gas, an independent oil and gas producer, is approved to use a 20% of gross income depletion allowance. The write-off last yearwas $700,000 on its horizontal directional drill wells. Determine the estimated total reserves in barrels, if the volume pumped last year amounted to 1% of the total and the delivered-product price averaged $75 per barrel.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Carrolton Oil and Gas, an independent oil and gas producer, is approved to use a 20% of gross income depletion allowance. The write-off last year
was $700,000 on its horizontal directional drill wells. Determine the estimated
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