The Oklahoma Oil Company incurred acquisition, exploration, and development costs during 2010 as given in Table P9.33.
Table P9.33

* Units are in millions dollars, except recoverable oil.
The market price of oil during 2010 was $60 per barrel.
(a) Determine the cost basis for depletion on each parcel.
(b) During 2010, 1,200,000 barrels were extracted from parcel A at a production cost of $3,600,000. Determine the depletion charge allowed for parcel A.
(c) In part (b), if Oklahoma Oil Company sold 1,000,000 of the 1,200,000 barrels extracted during 2010 at a price of $75 per barrel, the sales revenue would be $75,000,000. If it qualified for the use of percentage depletion (15%). what would be the allowed depletion amount for 2010?
(d) During 2010, 800,000 barrels were extracted (and sold) from parcel B at a production cost of $3,000,000. Assume that, during 2011, it is ascertained that the remaining proven reserves on parcel B total only 4,000,000 barrels (instead of the expected 4,200,000). This revision in proven reserves is considered a change in an accounting estimate that must be corrected during the current and future years. (A correction of previous years' depletion amounts is not permitted.) If 1,000,000 barrels are extracted during 2011, what is the total depletion charge allowed, according to the unit cost method?

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Site Items' Acquisition costs Exploration costs Development costs Recoverable oil Parcel A Parcel B Total 10 9 22 11 31 5 14 13 20 (millions of barrels)