A company purchased an oil well for $25 million. It is estimated that 10 million barrels can be extracted from the well. Determine depletion expense assuming 3 million barrels are extracted and sold during the year.
A) $7,350,000
B) $7,500,000
C) $5,000,000
D) $7,650,000

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The Answer of A company purchased an oil well for $25 million. It is estimated that 10 million barrels can be extracted from the well. Determine depletion expense assuming 3 million barrels are extracted and sold during the year.
A) $7,350,000
B) $7,500,000
C) $5,000,000
D) $7,650,000

A Company Purchased an Oil Well for $25 Million