On April 1 2014, Marlin company purchased a producing oil well at a cash cost...
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Accounting
On April 1 2014, Marlin company purchased a producing oil well at a cash cost of $3,500,000, it is estimated that 500,000 of oil can be produced over the remaining life of the well. By december 31 2014, 25,000 of oil had been produced and sold. The amount of depletion of expense on this well for 2014 would be
a) 17,500
b) 200,000
c) 175,000
d) 12,000
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