Alaska Energy Corporation Paid Cash to Acquire Land to Be

Alaska Energy Corporation paid cash to acquire land to be used for oil production. The costs incurred by Alaska Energy were the following:
$\begin{array}{llr} \text { Exploration of proposed land } &\$150,000\\ \text { Geologic surveys of land} &250,000\\ \text { Estimated oil reserves} &870,000\\ \text { Cost of purchase land } &6,500,000\end{array}$
Estimates were made that 3,885,000 gallons of crude oil can be extracted from the site over the life of the asset.
Required:Calculate the total cost of the oil field.Given that Alaska Energy was able to extract 230,000 gallons in the first year, 675,000 gallons in the second year, and 554,000 gallons in the third year, calculate the depletion charge for each year.