Plenty of Oil, Inc. purchased an oil field that is estimated to have 15,000,000 barrels of oil for $45 million in 2011. In 2011 and 2012, 1,800,000 barrels and 2,605,300 of oil, respectively were extracted. The oil field will have no residual value.
What is the value that will be reported on the balance sheet as of December 31, 2012?

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The Answer of Plenty of Oil, Inc. purchased an oil field that is estimated to have 15,000,000 barrels of oil for $45 million in 2011. In 2011 and 2012, 1,800,000 barrels and 2,605,300 of oil, respectively were extracted. The oil field will have no residual value.
What is the value that will be reported on the balance sheet as of December 31, 2012?