On March 1, 2022, Anniston Company purchased an oil well at a cost of $1,786,000. It is estimated that 270,000 barrels of oil can be produced over the remaining life of the well and the residual value of the well will be $220,000. During 2022, 27,000 barrels of oil were produced and all of these barrels were sold. Which of the following statements is incorrect with respect to the accounting for the oil well? Note: Do not round your