P10-32A Conseco Oil Company has an account titled Oil and Gas Properties. Conseco paid $6,000,000 for oil reserves holding an estimated 500,000 barrels of oil. Assume the company paid $550,000 for additional geo- logical tests of the property and $450,000 to prepare for drilling. During the first year, Conseco removed 70,000 barrels of oil, which it sold on account for $30 per barrel. Operating expenses totaled $800,000, all paid in cash. Requirements 1. Record all of Conseco's transactions, including depletion. (pp. 524-525) 2. Prepare the company's income statement for this oil and gas project for the first year. (p. 20)