An oil well cost$2,020,000 and is calculated to hold260,000 barrels of oil. There is no residual value. Which journal entry is needed to record the expense for the extraction of45,000 barrels of oil during theyear? All45,000 barrels were sold during the year.(Round any intermediate calculations to the nearestcent, and your final answer to the nearestdollar.)

A.

Cost of Goods Sold minus

Oil

349,650

Accumulated Depletion minus

Oil

349,650

B.

Depletion Expense minus

Oil

349,650

Oil Revenue

349,650

C.

Depletion Expense minus

Oil

349,650

Accumulated Depletion minus

Oil

349,650

D.

Oil Reserve Inventory

349,650

Accumulated Depletion minus

Oil

349,650