last line of the journal entry table.) Casella paid $6,600,000 for oil reserves holding an estimated 1,000,000 barrels of oil. Record the payment for the oil reserves. Do not record payment for any additional costs associated with the oil reserves (geological testing and/or drilling). We will do this in the following entry. Assume the company paid $530,000 for additional geological tests of the property and $400,000 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.) During the first year, Casella removed and sold 70,000 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.)