McCabe Oil, Inc. has an account titled Oil and Gas Properties. McCabe paid $ 6,200,000 for oil reserves holding an estimated 500,000 barrels of oil. Assume the company paid $ 510,000 for additional geological tests of the property and $ 490,000 to prepare for drilling. During the first year, McCabe removed and sold 90,000 barrels of oil. Record all of McCabe’s transactions, including depletion for the first year.
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