Black gold oil purchased a parcel of land containing an


Black Gold Oil purchased a parcel of land containing an estimated 2 million barrels of crude oil for $850,000. Two oil wells were drilled at a cost of $340,000. The residual value of the property and equipment is $50,000. Calculate the periodic depletion for the first year of operation if 325,000 barrels were extracted.

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Financial Management: Black gold oil purchased a parcel of land containing an
Reference No:- TGS01086253

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