Falco Oil Company began operations in 2017. During that year, Falco drilled an exploratory well on a lease located in a

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Falco Oil Company began operations in 2017. During that year, Falco drilled an exploratory well on a lease located in a remote area where any oil discovered would need to be transported via a pipeline. The well found reserves, but not enough to justify building a necessary pipeline. The company does not plan to drill any additional exploratory wells at this time. How should the costs of the well be handled?