2. Assume in problem 1, above, that the production engineer advises Willie that the total field life reserves for calculation of depletion based on updated analysis should be updated to 480,000 barrels. Production in Year 3 is 12,000 barrels, so based on the new estimate of total field life reserves the remaining reserves at the end of Year 3 are 456,000 barrels (480,000 barrels less production of 24,000, leaving 456,000 as the estimate of remaining filed life reserves at the close of Year 3)