On April 1, Year 1, Fossil Energy Company purchased an oil-producing well at a cash cost of $11,100,000. It is estimated that the oil well contains 840,000 barrels of oil, of which only 740,000 can be profitably extracted. By December 31, Year 1, 37,000 barrels of oil were produced and sold. The amount of depletion for Year 1 on this well would be: (Do not round intermediate calculations.)
A) $488,929.
B) $555,000.
C) $740,000.
D) $185,000.

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The Answer of On April 1, Year 1, Fossil Energy Company purchased an oil-producing well at a cash cost of $11,100,000. It is estimated that the oil well contains 840,000 barrels of oil, of which only 740,000 can be profitably extracted. By December 31, Year 1, 37,000 barrels of oil were produced and sold. The amount of depletion for Year 1 on this well would be: (Do not round intermediate calculations.)
A) $488,929.
B) $555,000.
C) $740,000.
D) $185,000.

On April 1, Year 1, Fossil Energy Company Purchased an Oil-Producing