Multiple Choice
A company purchased an oil well for $10 million.It is estimated that 5 million barrels can be extracted from the well.Determine depletion expense assuming 4 million barrels are extracted and sold during the year.
A) $1,250,000
B) $8,000,000
C) $12,500,000
D) $8,750,000
Correct Answer:
Verified
Correct Answer:
Verified
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