Cannon Drilling Corporation (CDC) recently incurred costs of $17.1 million for a plot of land...
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Cannon Drilling Corporation (CDC) recently incurred costs of $17.1 million for a plot of land where they have the rights to extract resources from the natural oil on the land. Cannon Drilling anticipates they can extract 9.0 million cubic feet of natural gas during a six-year period. They were lucky and were able to extract natural gas during years 1 and 2 880,000 and 1,620,000 cubic feet, respectively. Assuming the company uses Units-of Production, what is the total depletion for year 1 and year 2? Note: Do not round intermediate calculations.
Cannon Drilling Corporation (CDC) recently incurred costs of $17.1 million for a plot of land where they have the rights to extract resources from the natural oil on the land. Cannon Drilling anticipates they can extract 9.0 million cubic feet of natural gas during a six-year period. They were lucky and were able to extract natural gas during years 1 and 2 880,000 and 1,620,000 cubic feet, respectively. Assuming the company uses Units-of Production, what is the total depletion for year 1 and year 2? Note: Do not round intermediate calculations.
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