During the first year, Lynch removed and sold 75,000 barrels of oil. Record the depletion expense for the first year. (Assume no residual value. Round interim calculations to the nearest cent and your final answers to the nearest whole dollar.) last line of the journal entry table.) Lynch paid $6,000,000 for oil reserves holding an estimated 500,000 barrels of cil. Record the payment for the cil reserves. Do not record payment for any additional costs associated with the oil reserves (geological testing andior drilling). We wil do this in the following entry. Assume the company paid $510,000 for additional geological tests of the property and $450,000 to prepare for drilling. Record the payment for additional geological tests of the property and for preparing the property for drilling. (Record a single compound journal entry.)