Question - A company purchases an oil well for $350,000 with an estimated salvage value of $10,000. It estimates that the well contains 876,000 barrels of oil, and during the first year, it extracts 284,000 barrels. How much depletion should be recorded for the first year?
a. $110,228
b. $123,913
c. $198,164
d. $129,291