Question

Big Texan Oil Co. obtains shooting rights coupled with an option to lease for $60,000 on 3,000 acres owned by Dan Smith. The shooting rights are estimated at $5 per acre. Theoretically, the company should:

Debit G&G Expense for $15,000.

Debit G&G Expense for $45,000.

Debit G&G Expense for $60,000.

Debit Property Purchase Expense for $15,000.

need hand written answer
very fast answer needed

Answer 1