tion 29 On January 2. 2020. Izlar Site Exploration acquired a tract of land with rights to an unproven oil reserve for a orice of $9,600,000. Fair market value of the land itself is $200,000, the remainder of the purchase price being attributed to the oil reserve. Experts estimate that there are 800,000 barrells of crude in the reserve. In 2020 and 2021, respectively, they pumped 25,000 and 35.000 barrels of crude oil. REQUIRED: Prepare journal entries to record the depletion expense for 12/31/20 and 21/31/21, respectively, and compute the book value of the asset on December 31, 2020 and December 31, 2021 assuming units of production method is used. Partial years would be accounted for on a monthly basis