On October 1, 2022, $1,453,540 for the mineral rights to an area full of oil deposits containing an estimated 330,333 barrels of oil was acquired by Hector Enterprises. Also, the company installed equipment at the site costing $1,059,646 with no expected salvage value. The equipment would allow for the extraction of the oil within 15 years. The company plans to abandon the equipment at the end of its useful life. The company uses the Units of Production method to depreciate all PPE assets. The company began operations on October 26 and extracted and sold 33,932 barrels of oil during the remaining 2 months of the year.

REQUIRED:

Give the entries to record the December 31, 2022, amortization of the mineral rights and the depreciation of the equipment.