LERA sells 20,000 (gross) BBL of oil at $62/BBL. The lease is burdened with ...
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Accounting
| LERA sells 20,000 (gross) BBL of oil at $62/BBL. The lease is burdened with | |||||||||
| a 1/8 Royalty Interest, and the working interest owner has assigned an ORI of | |||||||||
| 5% to Black Jack Oil. The severance tax rate is 7%. | |||||||||
| REQUIRED: | |||||||||
| (1) Determine the decimal interest for each owner. | |||||||||
| (2) Determine the gross revenue for each owner. | |||||||||
| (3) Determine the severance tax for each owner. | |||||||||
| (4) Determine the expenses percentage paid by each owner. | |||||||||
| (5) Record the sale for the working interest owner. | |||||||||
PLEASE SHOW ALL THE WORK IN DETAILS!!
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