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On March 1, 2019, Anniston Company purchased an oil well at a cost of $1786,000....

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Accounting

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On March 1, 2019, Anniston Company purchased an oil well at a cost of $1786,000. It is estimated that 270,000 barrels of oil can be produced over the remaining life of the well and the residual value of the well will be $220.000 During 2019, 27,000 barrels of oil were produced and 20,800 barrels were sold. Which of the following statements is correct with respect to the accounting for the oil well? (Do not round your intermediate calculations.) Multiple Choice The book value of the oil well decreased $120,640 during 2019. The 2019 cost of goods sold was $35.960. The inventory of oil was $35.960 at December 3t 2019, C) The 2019 cost of goods sold was $156,600

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