Unformatted text preview: $1,000,000. Of this amount, $250,000 is expected to be attributable to the equipment. Assuming the above estimates serve as the basis for depletion, calculate depletion cost for the 3rd year. Prepare an approriate journal entry for depletion. In preparing the entry, assume that all oil is sold at the time of its production (i.e., none of the oil remains in inventory)....
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- Spring '11
- Accounting, barrels, McCurdy Oil