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On April 1, Year 1, Fossil Energy Company purchased an oil producing well at a cash cost of $10,620,000. It is estimated that the
On April 1, Year 1, Fossil Energy Company purchased an oil producing well at a cash cost of $10,620,000. It is estimated that the oil well contains 820,000 barrels of oil, of which only 720,000 can be profitably extracted. By December 31, Year 1, 36,000 barrels of oil were produced and sold. What is depletion expense for Year 1 on this well? (Do not round intermediate calculations.):
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
