E connect Ch. 10 Test Question 3 ( 10.00 points MC Qu. 84 LO Appendix 10 During

Question

E connect Ch. 10 Test Question 3 ( 10.00 points MC Qu. 84 LO Appendix 10 During 2016, the Longhorn Oil Company Durng 2016, tne Larghom Oi Company incured $4.600.000 in exploration costs for each of 20 oil uses the successfil eforts method of accounting Assuming that none of the ol found is depleted in 2016, what ou exploration expense wouls Longhom charge for this actvity n its 2016 ncome statement? O $322 milion O$920ition O 5598 mion O so Mutiple Choice uc Ou 84 LO Appenale to Dusing 2016, the Loognon TOSHIBA 2 4 5 6 tab

Explanation / Answer

Since, the total of 20 oil wells were drilled during exploration. Therefore, total expense of 20 oil wells drilled has to be recorded in the income statement.

Cost of each oil well drilled = $4,600,000

Total cost of 20 oil wells drilled = 4,600,000×20 = $92,000,000 = $92 million

Answer is "$92.0 million"

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.