BB Petroleum, a giant oil company, holds reserves of oil and gas assets. At the end of 2018, assume the cost of BB's oil reserves totaled $234 billion, representing 18 billion barrels of oil in the ground. Read the requirements. 1. Which depreciation method is similar to the depletion method that BB and other oil companies use to compute their annual depletion expense for the oil removed from the ground? Units-of-production is similar to the depletion method that BB Petroleum and other oil companies use to compute their annual depletion expense for the oil removed from the ground. 2. Suppose the company removed 1.200 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) Journal Entry Date Accounts Debit Credit Billions Oil Inventory 6.5 Oil Reserve 6.5 -- * Requirements 1. Which depreciation method is similar to the depletion method that BB and other oil companies use to compute their annual depletion expense for the oil removed from the ground? 2. Suppose the company removed 1,200 million barrels of oil during 2019. Record this event. Show amounts in billions. 3. Assume that of the amount removed in (2) the company sold 1000 million barrels. Make the cost of sales entry swer. ? Check