Question: Please help. And please do not provide an answer I have already posted and gotten wrong Cornerstone Exercise 7-27 (Algorithmic) Depletion of Natural Resources Brandon
Please help. And please do not provide an answer I have already posted and gotten wrong



Cornerstone Exercise 7-27 (Algorithmic) Depletion of Natural Resources Brandon Oil Company recently purchased oil and natural gas reserves in a remote part of Alaska for $800,000. Brandon spent $10,000,000 preparing the oil for extraction from the ground. Brandon estimates that 120,000,000 barrels of oil will be extracted from the ground. The land has a residual value of $20,000. During 2019, 15,210,000 barrels are extracted from the ground Required: WI Calculate the amount of depletion taken in 2019. (Note: In your calculations, round depletion per barrel to two decimal places.) 1,366,365X Cornerstone Exercise 7-27 (Algorithmic) Depletion of Natural Resources Brandon Oil Company recently purchased oil and natural gas reserves in a remote part of Alaska for $800,000. Brandon spent $10,000,000 preparing the oil for extraction from the ground. Brandon estimates that 120,000,000 barrels of oil will be extracted from the ground. The land has a residual value of $20,000. During 2019, 15,210,000 barrels are extracted from the ground Required: Calculate the amount of depletion taken in 2019. (Note: In your calculations, round depletion per barrel to two decimal places.) 13,536,900 | X CE 7-27 First, the rate of depletion is calculated as $0.11/barrel as follows: ($1,850,000 $10,000,000 $20,000)/108,000,000 barrels $0.11/barrel Next, the rate of depletion is multiplied by the barrels extracted: 2019 depletion: $0.11 x 15,000,000 barrels $1,650,000
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