On March 1, 20A, Jance Company Purchased a Producing Oil

Multiple Choice

On March 1, 20A, Jance Company purchased a producing oil well at a cash cost of $100,000. It is estimated that 250,000 barrels of oil can be produced over the remaining life of the well. By December 31, 20A (end of the accounting period) , 1,500 barrels of oil were produced and sold. What would be the amount of depletion expense for 20A on this well?

A) $300
B) $600
C) $450
D) $750