The Manguino Oil Company incurred exploration costs in 2018 searching and drilling for oil as follows:Well 101 $ 50,000Well 102 60,000Well 103 80,000Wells 104–108 260,000Total $450,000It was determined that Wells 104–108 were dry holes and were abandoned. Wells 101, 102, and 103 weredetermined to have sufficient oil reserves to be commercially successful.Required:1. Prepare a summary journal entry to record the indicated costs assuming that the company uses the full-costmethod of accounting for exploration costs. All of the exploration costs were paid in cash.2. Prepare a summary journal entry to record the indicated costs assuming that the company uses the successfulefforts method of accounting for exploration costs. All of the exploration costs were paid in cash.

Required information [The following information applies to the questions displayed below.] Last Chance Mine (LCM) purchased a coal deposit for $2,088,450. It estimated it would extract 17,550 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.15 million, $4.35 million, and $3.1 million for years 1 through 3, respectively. During years 1-3, LCM reported net income (loss) from the coal deposit activity in the amount of ($15,400), $667,500, and $662,500, respectively. In years 1-3, LCM extracted 18,550 tons of coal as follows: (Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.) (1) Tons of Coal 17,550 (2) Basis $2,088,450 Depletion (2)/(1) Rate $119.00 Year 1 2,400 Tons Extracted per Year Year 2 11,450 Year 3 4,700 c. Using the cost and percentage depletion computations from parts (a) and (b), what is LCM's actual depletion expense for each year? Depletion Expense Year 1 Year 2 $…

Please see below. Need help with both parts. This is all part of the same question. Victor Mineli, the new controller of Sandhill Co., has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2017. Here are his findings: Type of Asset   DateAcquired       AccumulatedDepreciation,Jan. 1, 2017   Useful Life (in years)   Salvage Value     Cost     Old   Proposed   Old   Proposed Building   Jan. 1, 2009   $770,000   $139,900   40   48   $70,500   $36,500 Warehouse   Jan. 1, 2012   142,000   27,130   25   20   6,350   5,400 All assets are depreciated by the straight-line method. Sandhill Co. uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Victor’s proposed changes. (The “Proposed” useful life is total life, not remaining life.)     Compute the revised annual depreciation on each asset in 2017. (Round answers to 0 decimal places,…