Xavier Corp Capitalized Exploration and Evaluation Costs of $470,000

question 52

Essay

Xavier Corp capitalized exploration and evaluation costs of $470,000. A further $1,357,000 was spent on tangible property, plant, and equipment to develop an oil well. Reserves at the beginning of the year were 480,000 barrels. During the year, the Corp produced 57,600 barrels of oil.
Calculate the amounts for depletion and depreciation.

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Definitions:

Assimilated

The process by which individuals or groups of differing ethnic heritage are absorbed and integrated into the dominant culture of a society.

Established Religion

Refers to a religion given official status and support by a government, making it the nation's or state's recognized faith.

Slave Revolts

Armed uprisings by enslaved people seeking freedom and the abolition of slavery.

South Carolinians

Residents of South Carolina, a southeastern U.S. state known for its shorelines, historical significance, and cultural heritage.