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A company purchases an oil well for $300,000 with an estimated life of 10 -years and no residual value. Estimated reserves are 500,000 barrels. The company extracts and sells 40,000 barrels during the first year. Depletion expense for that year should be: A. $32,000 D. $40,000 B. $80,000 E. $24,000 C. $48,000