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A company purchased an oil well for $250,000. It estimates that the well contains 50,000 barrels, has an eight-year life, and no salvage value. If
A company purchased an oil well for $250,000. It estimates that the well contains 50,000 barrels, has an eight-year life, and no salvage value. If the company extracts and sells 9,000 barrels of oil in the first year, how much in cost of sales should be recorded? O A. $45,000 OB. $125,000 OC. $31,250 OD. $25,000
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