King Oil Company has the working interest in a fully developed lease located in Texas. As of 12/31/07, the lease had proved developed reserves of 1,200,000 barrels and unrecovered costs of $12,000,000. During the third quarter of 2008 , a new reserve study was received that estimated proved developed reserves of 1,500,000 as of August 1, 2008. Calculate DD\&A for each quarter, assuming the following production and using the first method illustrated in the chapter