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Your Company purchased a producing oil well for $3,500,000. Salvage value is estimated to be...

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Accounting

Your Company purchased a producing oil well for $3,500,000. Salvage value is estimated to be $150,000. The well was expected to produce 1,000,000 barrels of oil over its useful life. During 2014 the company extracted 220,000 barrels of oil. The oil was sold for $20 per barrel. The company incurred $1,450,000 in operating expenses during 2014. What is cost depletion for Year one? ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DISCRIPTIONS.

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