Alaska Energy Corporation paid cash to acquire land to be used for oil production. The costs incurred by Alaska Energy were the following
The company estimated that 3,885,000 gallons of crude oil could be extracted from the site over the life of the asset. The company was able to extract 230,000 gallons in Year 1, 675,000 gallons in Year 2, and 554,000 gallons in Year 3.
Required:a)Calculate the depletion charge for:(1)Year 1(2)Year 2(3)Year 3

Question

Alaska Energy Corporation paid cash to acquire land to be used for oil production. The costs incurred by Alaska Energy were the following
  The company estimated that 3,885,000 gallons of crude oil could be extracted from the site over the life of the asset. The company was able to extract 230,000 gallons in Year 1, 675,000 gallons in Year 2, and 554,000 gallons in Year 3.
Required:a)Calculate the depletion charge for:(1)Year 1(2)Year 2(3)Year 3

Quizplus · Accepted Answer

The Answer of Alaska Energy Corporation paid cash to acquire land to be used for oil production. The costs incurred by Alaska Energy were the following
  The company estimated that 3,885,000 gallons of crude oil could be extracted from the site over the life of the asset. The company was able to extract 230,000 gallons in Year 1, 675,000 gallons in Year 2, and 554,000 gallons in Year 3.
Required:a)Calculate the depletion charge for:(1)Year 1(2)Year 2(3)Year 3

Alaska Energy Corporation Paid Cash to Acquire Land to Be