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7. Alaska Energy Corporation paid cash to acquire land to be used for oil production. The costs incurred by Alaska Energy were the following: (worth 10 points) Exploration of proposed land Geologic surveys of land Estimated oil reserves Cost to purchase land 150,000 250,000 870 ooo Estimates were made that 3,885,000 gallons of crude oil can be extracted from the site over the life of the asset. Required: a) Prepare the journal entry(ies) to record the purchase of the oil field. b) Given that Alaska Energy was able to extract 230,000 gallons in the first year, 675,000 gallons in the second year, and 554,000 gallons in the third year Calculate the depletion charge for each year.