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M8.19. omputing and Recording Depletion Expense The Nelson Oil Company estimated that the oil reserve that it acquired in 2016 4 million barrels of oil.
M8.19. omputing and Recording Depletion Expense The Nelson Oil Company estimated that the oil reserve that it acquired in 2016 4 million barrels of oil. The company extracted 300,000 barrels the first ye 2017, and 600.000 barrels in 2018. Nelson paid S32.,000,000 for the oil reserve.bae a. Compute the depletion expense for each year-2016, 2017, and 2018. b. Prepare the journal entries to record (i) the acquisition of the oil reserve , and (ii the for 2016. c. Open T-accounts and post the entries from part b in the accounts
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