Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on march 1,2022, anniston company purchased an oil

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

80.2K

Verified Solution

Question

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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Genes often interact with one another. The term epistasis is applied to cases in which one...

Chemistry
1.2K views

1. List the proper GLP involve in the handling of a buret. 2. What is the tolerance...

Programming
1.2K views

Using C# Create the “TestQuestion” class. It will have two class variables: 1) a question and 2)...

Physics
1.2K views

Find the lowest two \"threefold degenerate excited states\" of the three-dimensional infinite square well potential for...

Accounting
1.2K views

ACCT Corp. is a manufacturer of truck trailers. On 1 January 2020, ACCT Corp. leased a...

Biology
1.2K views

Which of the following minerals is softest?O calciteO feldsparO corundumO quartzO augite

Accounting
1.2K views

Robert Finiey wishes to become a millionaire. His money market fund...

Accounting
1.2K views

Please calculate the projected financial information for 2019E & 2020E. The growth rate is 21%....

Accounting
1.2K views

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format...

Accounting
1.2K views

Calculator Dotar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45....

Accounting
1.2K views

Selected company: Fisher & Paykel healthcare corporation From the research you have conducted about the...

Accounting
1.2K views

The Miracle Company had 20,000 units in process on December 31, 2020 which were 70%...