On January 2, 2008, Bantam Oil Company purchased an oil well for $625,000. The well contains an estimated 150,000 barrels of oil, with an estimated residual value of $25,000. During 2008, 15,000 barrels of oil were removed from the well. To record depletion for 2008, Bantam Oil Company will debit Depletion Expense for:
A) $60,000.
B) $64,500.
C) $62,500.
D) $69,444.
Correct Answer:
Verified
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