Record the depletion expense for the first year. (Round the depletion per unit the nearestcent, and total depletion to the nearestdollar.)

Cheney Oil Company has an account titled Oil and Gas Properties. Cheney paid $6,600,000 for oil reserves holding an estimated500,000 barrels of oil. Assume the company paid $580,000 for additional geological tests of the property and $430,000 to prepare for drilling. During the firstyear, Cheney removed 60,000 barrels ofoil, which it sold on account for$32 per barrel. Operating expenses totaled $890,000, all paid in cash.