On April 1, Year 1, Fossil Energy Company Purchased an Oil

question 87

Multiple Choice

On April 1, Year 1, Fossil Energy Company purchased an oil producing well at a cash cost of $14,740,000. It is estimated that the oil well contains 980,000 barrels of oil, of which only 880,000 can be profitably extracted. By December 31, Year 1, 44,000 barrels of oil were produced and sold. What is depletion expense for Year 1 on this well?

• A)$982,667
• B)$737,000
• C)$245,667
• D)$661,796

---

Definitions:

Pacinian Corpuscles

Structures in the skin and various organs that detect mechanical stimuli, particularly vibrations and pressure.

Free Nerve Endings

Sensory receptors located near the surface of the skin that detect temperature, pain, and touch stimuli without specialized structures.

Temperature

A physical quantity that expresses hot and cold. It is a measure of the thermal energy per particle of matter or radiation.

Proprioception

The body's ability to perceive its own position in space, important for coordination and balance.