User Account

All Pages

Prepare the decimal interests assigned to each party

Assignment Help Accounting Basics
Reference no: EM132594447

Question - John Thornton owns 320 mineral acres in Gray County, Texas. On September 1, 2019 Johnson enters into a 5-year lease agreement with Summit Oil Company ("Summit"), reserving 1/4 interest.

On January 1, 2020 Summit made the following assignments:

1. To Lyla Williams, an ORRI of 1/8.

2. To Denise Brown, a production payment of 5,000 BBLs of oil to be paid out of 1/5 of the working interests' share of production.

3. After considering the above assignments, to Juniper Oil LLC a joint working interest of 10%.

REQUIRED (Must show work in details) -

A. Prepare the decimal interests assigned to each party.

B. Assuming 30,000 gross BBLs of oil, calculate the number of barrels each party would receive.

Reference no: EM132594447

Questions Cloud

Lower and upper bounds on the price of an american option : What are the lower and upper bounds on the price of an American option to sell PBA's shares for $8.50 in three months?
Discuss the meaning or implications of article content : Discuss the meaning or implications of the article's contents, as well as any flaws you find in the article. What could have made the article better?
Concept of time value of money applications : Give 2 real-life examples of the concept of time value of money applications. (Take note that the concept must be clearly explained in both scenarios.)
Calculate the portfolio delta and gamma : Show how the institution can use an exchange-traded put option on the AUD with a delta of -0.3 and gamma of 1.4 to make its portfolio delta and gamma neutral.
Prepare the decimal interests assigned to each party : John Thornton owns 320 mineral acres in Gray County, Texas. Prepare the decimal interests assigned to each party
Practice of inventory management in countries : Do you think the ongoing trade dispute between China and the US will affect the practice of inventory management in other countries? If so, how?
What is evidence-based management according to briner : What is evidence-based management according to Briner et al (2009) and what are the five steps that are recommended by the authors?
How do we forecast growth : How do we forecast growth? Why are there so many methods? Why is it so difficult? Why is it so important?
What type of interest has Thomas acquired : Assume in 2020 Thomas produces and sells 15,200 BBLs of oil for total gross revenue of $836,000, What type of interest has Thomas acquired

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd