During 2022 the exploration department ofBubblinCrude Oil Corporation incurred the following costs in exploring theWolfcampbasin. Give the entries:
a.Shooting rights12,000
b.Bottom-hole contribution40,000
c.Supplies for exploration (G&G) activities8,000
d.Salaries for exploration (G&G) activities100,000
e.Mapping costs for exploration (G&G) activities15,000
f.Depreciation of exploration equipment20,000
g.Transportationof seismic crew5,000
h.Operating costs for exploration (G&G) equipment3,000
3.Discuss why each party to a test-well contribution situation would enter into the transaction.
