TexAm Petroleum holds huge reserves of oil assets. Assume that at the end of 2013, TexAm Petroleums

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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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Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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Question Posted: Jan 16, 2015 08:59 AM

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TexAm Petroleum holds huge reserves of oil assets. Assume that at the end of 2013, TexAm Petroleums

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Requirement 1 Unitsofproduction is the method used to compute depletion Requirement 2 Depl...View the full answer

Horngrens Financial and Managerial Accounting

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