A company incurred costs of $20.9 million for the rights to extract resources from a...
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A company incurred costs of $20.9 million for the rights to extract resources from a natural gas deposit. The company expects to extract 9.5 million cubic feet of natural gas during a six-year period. Natural gas extracted during years 1 and 2 were 950,000 and 1,750,000 cubic feet, respectively. What was total depletion for year 1 and year 2 , assuming the company uses the units-of-production method? Note: Do not round intermediate calculations. Multiple Choice $3.85 milion $9.50 million $6.97 million $5.94 million
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