During 2013, the Longhorn Oil Company incurred $5,000,000 in exploration costs for each of 20...
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Accounting
During 2013, the Longhorn Oil Company incurred $5,000,000 in exploration costs for each of 20 oil wells drilled in 2013 in west Texas. Of the 20 wells drilled, 15 were dry holes. Longhorn uses the successful efforts method of accounting. Assuming that none of the oil found is depleted in 2013, what oil exploration expense would Longhorn charge for this activity in its 2013 income statement?
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