GoodResources incurred the following costs: How much would be capitalized as "property, plant or equipment" under the successful efforts method?
A)$100,000
B)$200,000
C)$300,000
D)$700,000

Question

GoodResources incurred the following costs:  How much would be capitalized as "property, plant or equipment" under the successful efforts method?
A)$100,000 
B)$200,000 
C)$300,000 
D)$700,000

Quizplus · Accepted Answer

Under the successful efforts method, only costs associated with successful exploration projects can be capitalized as property, plant, or equipment. The total costs listed in the question are $300,000, so this amount would be capitalized if all costs were related to successful exploration projects.

GoodResources Incurred the Following Costs: How Much Would Be