In 2016, Go Oil Company incurred costs of $8 million drilling oil wells. Thirty percent of the drilling resulted in oil being found. The rest of the drilling was unsuccessful. If Go uses the successful-efforts method of accounting, the oil and gas properties will be valued on the December 31, 2016 balance sheet at
A) $8,000,000.
B) $4,900,000.
C) $4,200,000.
D) $2,400,000.
D
You might also like to view...
If you have mildly disappointing information to deliver as part of a positive message, you should
A) put the negative information in a favorable context. B) simply omit it from the message. C) put the negative information first. D) put the negative information last. E) use humor to suggest the outcome is not too bad.
Perception, not reality, drives purchasing behavior
Indicate whether the statement is true or false
In a typical computerized accounting information system, ________.
A) transactions must be recorded in debit and credit format B) the software automatically knows to record a debit or a credit C) transactions are posted manually D) spreadsheets must be used to produce financial statements
Which If-Then-Else statement will allow you to avoid a division by zero in the function:
Public Function Perpetuity(Dividend As Single, ReqReturn As Single, DivFreq As Single) As Single Perpetuity = Dividend/(ReqReturn/DivFreq) End Function a) If ReqReturn > 0 Then Perpetuity = Dividend/(ReqReturn/DivFreq) Else Perpetuity = CVErr(xlErrValue) End If b) If ReqReturn <> 0 Then Perpetuity = Dividend/(ReqReturn/DivFreq) Else Perpetuity = CVErr(xlErrValue) End If c) If ReqReturn = 0 Then Perpetuity = CVErr(xlErrValue) Else Perpetuity = Dividend/(ReqReturn/DivFreq) End If d) All of the above e) None of the above