Computing and Recording Depletion Expense The Nelson Oil Company estimated that the oil reserve that it acquired in 2019 would produce 4 million barrels of oil. The company extracted 300,000 barrels the first year, 500,000 barrels in 2020, and 600,000 barrels in 2021. Nelson paid $32,000,000 for the oil reserve. a. Compute the depletion expense for each year-2019, 2020, and 2021. Year Depletion 2019 $ 2400000 2020 $ 4000000 2021 $ 4800000 b. Prepare the journal entries to record (i) the acquisition of the oil reserve, and (ii) the depletion for 2019. General Journal Description Debit Credit 0 Oil reserve 3200000 Cash 32000000 (ii) 2400000 2400000 C. Open T-accounts and post the entries from part b in the accounts. Cash (A) Oil Inventory (A) (0) (0) Oil Reserve (A)