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On March 1,2022, Anniston Company purchased an oil well at a cost of $1,744,000. It...

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Accounting

On March 1,2022, Anniston Company purchased an oil well at a cost of $1,744,000. It is estimated that 230,000 barrels of oil can be produced over the remaining life of the well and the residual value of the well will be $180,000.
During 2022,23,000 barrels of oil were produced and all of these barrels were sold. Which of the following statements is incorrect with respect to the accounting for the oil well?
Note: Do not round your intermediate calculations.
Multiple Choice
The inventory of oil was $156,400 at December 31,2022.
The book value of the oil well decreased $156,400 during 2022.
The depletion rate is $6.80 per barrel of oil.
The 2022 cost of goods sold was $156,400.

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