S10-11 Accounting for depletion of natural resources North Coast Petroleum holds huge reserves of oil assets. Assume that at the end of 2016, North Coast Petroleum's cost of oil reserves totaled $60,000,000,000, represent- ing 5,000,000,000 barrels of oil. Requirements 1. Which method does North Coast Petroleum use to compute depletion? 2. Suppose North Coast Petroleum removed and sold 900,000,000 barrels of oil dur- ing 2017. Journalize depletion expense for 2017. S10-12 Accounting for an intangible asset On March 1, 2016, Twist Company purchased a patent for $168,000 cash. Although the patent gives legal protection for 20 years, the patent is expected to be used for only five years. Requirements 1. Journalize the purchase of the patent. 2. Journalize the amortization expense for the year ended December 31, 2016. Assume straight-line amortization. Le Lea