16. On July 19, 2022 Big Deal Oil Company pays landowner Cringeworthy $3 an acre...
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16. On July 19, 2022 Big Deal Oil Company pays landowner Cringeworthy $3 an acre for the right to explore 3,200 acres (5 sections). Big Deal also buys an option to lease any or all of the 3,200 acres for $5 per acre within 9 months, for $900 per acre. Record the transactions listed above. 17. Refer to problem 16 above: On October 12, 2022 Big Deal exercises the option on $1,200 acres and allows the remainder of the option to lapse. Record the appropriate journal entries.| 18. Refer to problem 16 above, independent of problem 17; After 9 months, Big Deal allows the option to purchase mineral rights to lapse
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16. On July 19, 2022 Big Deal Oil Company pays landowner Cringeworthy $3 an acre for the right to explore 3,200 acres (5 sections). Big Deal also buys an option to lease any or all of the 3,200 acres for $5 per acre within 9 months, for $900 per acre. Record the transactions listed above. 17. Refer to problem 16 above: On October 12, 2022 Big Deal exercises the option on $1,200 acres and allows the remainder of the option to lapse. Record the appropriate journal entries.| 18. Refer to problem 16 above, independent of problem 17; After 9 months, Big Deal allows the option to purchase mineral rights to lapse 