Clark Oil and Gas Incurred Costs of $15

Multiple Choice

Clark Oil and Gas incurred costs of $15.3 million for the rights to extract resources from a natural gas deposit. The company expects to extract 8 million cubic feet of natural gas during a six-year period. Natural gas extracted during years 1 and 2 were 800,000 and 1,600,000 cubic feet, respectively. What was total depletion for year 1 and year 2, assuming the company uses the units-of-production method?

A) $5.10 million.
B) $3.06 million.
C) $8.00 million.
D) $4.59 million.