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If total exploration cost for one of the oil holes was $50,000,000 and the estimated quantity that can be extracted was 10,000,000 barrels of oil.
If total exploration cost for one of the oil holes was $50,000,000 and the estimated quantity that can be extracted was 10,000,000 barrels of oil. Total production cost for that year was $10,000,000 to extract 1,000,000 barrels of oil. Based on this, depletion cost per barrel is:
Select one:
a.$27.5 per barrel
b.$5 per barrel
c.$15 per barrel
d.$10 per barrel
e.Another amount
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