Chapter 7 Homework Cornerstone Exercise 7-27 (Algorithmic) Depletion of Natural Resources Brandon Oil Company recently purchased oil and natural gas reserves in a remote part of Alaska for $800,000. Brandon spent $10,000,000 preparing the oil for extraction from the ground. Brandon estimates that 120,000,000 barrels of oil will be extracted from the ground. The land has a residual value of $20,000 During 2019, 14,530,000 barrels are extracted from the ground. Required: Calculate the amount of depletion taken in 2019. (Note: In your calculations, round depletion per barrel to two decimal places.) Feedback Check My Work Practice Chapter 7 Homework se 7-25 (algorithmic) On January 1, 2019, Loeffler Company acquired a machine at a cost of $302,000. Loeffler estimates that it will use the machine for 4 years or 8,000 machine hours. It estimates that after 4 years the machine can be sold for $14,000. Loeffler uses the machine for 1,700 and 2,000 machine hours in 2019 and 2020, respectively. ic) Cost of Required: Compute depreciation expense for 2019 and 2020 using the: 1. Straight-line method of depreciation. Depreciation Expense couly defending the 2019 72,000 2020 72,000 > 2. Double-declining-balance method of depreciation. Depreciation Expense 151,000 2019 2020 3. Units-of-production method of depreciation Depreciation Expense Vas this answer helpful? 2019 and the cost incurre 2020 elpful? ncurre