World Petroleum, a giant oil company, holds reserves of oil and gas assets. At the end of 2018, assume the cost of World's oil reserves totaled $216 billion, representing 12 billion barrels of oil in the ground. Read the requirements. 1. Which depreciation method is similar to the depletion method that World and other oil companies use to compute their annual depletion expense for the oil removed from the ground? Units-of-production is similar to the depletion method that World Petroleum and other oil companies use to compute their annual depletion expense for the oil removed from the ground. 2. Suppose the company removed 500 million barrels of oil during 2019. Record this event. (Record debits first, then credits. Exclude explanations from any journal entries. Enter amounts in billions as provided to you in the problem statement. Round all calculations and the final answer to the nearest tenth of a billion, X.X) Journal Entry Date Accounts Debit Credit Billions Accumulated Depreciation Cost of Oil Sold Depreciation Expense Oil Reserve Require Oil Inventory - X 1. Which depreciation method is similar to the depletion method that World and other oil companies use to compute their annual depletion expense for the oil removed from the ground? 2. Suppose the company removed 500 million barrels of oil during 2019. Record this event. Show amounts in billions. 3. Assume that, of the amount removed in (2), the company sold 200 million barrels. Make the cost of sales entry. wer. ? k