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A company buys land which is rich in oll for $5,900,000. It incurs additional costs...

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Accounting

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A company buys land which is rich in oll for $5,900,000. It incurs additional costs of $600,000 to access the oil, which is estimated to contain 2,000,000 gallons and will take 5 years to extract. What journal entry would be needed to record the expense for the first year, assuming 425,000 gallons were pumped out of the land? Muliple Choice Debit Depletion Expense \$1.233,100; credit Accumulated Depletion \$1,233,300 Debit Amortization Expense \$1381.250; credit Accumulated Amortization \$1.381, 250. Debt Depreciation Expense \$1,381,250, credi Accumulated Depreciation $1,381,250. Debit Depletion Expense \$1,381,250, credit Accumulated Depletion \$1,381,250. Debit Depreciation Expente \$1,233,100, credit Accumulated Depreciation \$1,233500

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