Question: TexAm Petroleum holds huge reserves of oil assets Assume that

TexAm Petroleum holds huge reserves of oil assets. Assume that at the end of 2013, TexAm Petroleum’s cost of oil reserves totaled $ 72,000,000,000, representing 8,000,000,000 barrels of oil.

Requirements
1. Which method does TexAm Petroleum use to compute depletion?
2. Suppose TexAm Petroleum removed and sold 400,000,000 barrels of oil during 2014. Journalize depletion expense for 2014.


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  • CreatedJanuary 16, 2015
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