Golden Industries purchased an oil well for $6,750,000, with drilling rights costing $1,000,000 and site-preparation expenses of $250,000. Total expected production is 10,000,000 barrels of oil. During the first year, 825,000 of 1,250,000 barrels excavated were sold. If Golden records depletion expense as the barrels are sold, what is the book value of the oil well at the end of year 1? $7,000,000 $6,750,000 $7,175,000 $7,340,000