J.R. Enterprises purchases an oil well for $300 million. It is estimated that 5 million...
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J.R. Enterprises purchases an oil well for $300 million. It is estimated that 5 million barrels can be extracted from the well and that the estimated residual value of the well will be $0. Depletion expense for the first year if 150,000 barrels were extracted and sold, would be (use the production method):
| A)$6,000,000 | B)$10,000,000 |
| C)$9,000,000 | D)$2,000,000 |
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