Chapman Oil, Inc. has an account titled Oil and Gas Properties. Chapman paid $6,300,000 for oil reserves holding an estimated 400,000 barrels of oil. Assume the company paid $560,000 for additional geological tests of the property and $440,000 to prepare for drilling. During the first year, Chapman removed and sold 65,000 barrels of oil. Record all of Chapman’s transactions, including depletion for the first year.
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