Falco Oil Company began operations in 2017. During that year, Falco drilled an exploratory well on a lease located in a
Posted: Thu May 19, 2022 2:06 pm
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?