coverability test is used of intangible assets? Indefinite life intangibles other than Limited life intangibles. c. Goodwill. d. Indefinite life intangibles. Problems 25. On July 1, 2021 Delaney Company purchased for $8,000,000 a lease on a site estimated to contain 400,000 barrels of oil. Exploration and development costs of S10,000.00 were also incurred during 2021. 70,000 barrels were extracted during 2021 and 80.000 barrels were extracted during 2022. Instructions (6 points) (a) Calculate the depletion rate to be used by Delaney for this lease. (b) Calculate the depletion for 2021 and 2022 respectively