On March Anniston Company purchased an oil well at a cost of $ It is estimated that barrels of oil can be produced over the remaining life of the well and the residual value of the well will be $
During 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 $ at December
The book value of the oil well decreased $ during
The depletion rate is $ per barrel of oil.
The cost of goods sold was $
