Debit Company paid $250,000 for an oil field that contains an estimated 20,000 barrels of oil. 5,000 barrels are extracted in 2011 and 6,500 barrels are extracted in 2012. Journalize entries to record the depletion for the first and second year and calculate the book value of the oil field at the end of the second year.

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The Answer of Debit Company paid $250,000 for an oil field that contains an estimated 20,000 barrels of oil. 5,000 barrels are extracted in 2011 and 6,500 barrels are extracted in 2012. Journalize entries to record the depletion for the first and second year and calculate the book value of the oil field at the end of the second year.

Debit Company Paid $250,000 for an Oil Field That Contains