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  3. during 2018, prospect oil corporation incurred $3,

During 2018, Prospect Oil Corporation incurred $3,300,000 in exploration costs for each of 20 oil...

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Accounting

During 2018, Prospect Oil Corporation incurred $3,300,000 in exploration costs for each of 20 oil wells drilled in 2018. Of the 20 wells drilled, 11 were dry holes. Prospect uses the successful efforts method of accounting. Assuming that Prospect depletes 25% of the oil discovered in 2018, what amount of these exploration costs would remain in its 12/31/2018 balance sheet?

Multiple Choice

  • $16.67 million.

  • $22.27 million.

  • $29.70 million.

  • $37.47 million.

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