Gandy Oil Incorporated has an account titled Oil and Gas Properties. Gandy paid $6,100,000 for oil reserves holding an estimated 300,000 barrels of oil. Assume the company paid $560,000 for additional geological tests of the property and $480,000 to prepare for drilling. During the first year, Gandy removed and sold 95,000 barrels of oil. Record all of Gandy’s transactions, including depletion for the first year.
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