Arabia Petroleum, a giant oil company, holds reserves of oil and gas assets. At the end of

2018, assume the cost of Arabia's oil reserves totaled

$ 238billion, representing

17 billion barrels of oil in the ground.

1. Which depreciation method is similar to the depletion method that

Arabia and other oil companies use to compute their annual depletion expense for the oil removed from the ground?

Double-declining-balance

Straight-line

Units-of-production

is similar to the depletion method that Petroleum

and other oil companies use to compute their annual depletion expense for the oil removed from the ground.

2. Suppose the company removed

1,000 million barrels of oil during 2019.

Record this event. (Record debits first, then credits. Exclude explanations from any journal entries. Enter amounts in billions as provided to you in the problem statement. Round all calculations and the final answer to the nearest tenth of a billion, X.X)

Jual Entry Date Debit Credit EWan uld 900 o baes of ssles endry. (Record debits fri Exclude esplsnationms from eties Entr n biliuns as Journall Entry Date Accounts Debit Credit