Plenty of Oil, Inc

question 99

Essay

Plenty of Oil, Inc. purchased an oil field that is estimated to have 15,000,000 barrels of oil for $45 million in 2011. In 2011 and 2012, 1,800,000 barrels and 2,605,300 of oil, respectively were extracted. The oil field will have no residual value.
What is the value that will be reported on the balance sheet as of December 31, 2012?

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Definitions:

Economic Well-Being

A measure of how well individuals or societies can satisfy their wants and needs through the production, distribution, and consumption of goods and services.

Exports

Goods or services produced in one country and sold to buyers in another country, often contributing to a nation's gross domestic product.

Imports

Goods or services brought into one country from another for sale.

Comparative Advantage

The ability of an individual or country to produce a particular good or service at a lower opportunity cost than its trade partners, leading to more efficient trade outcomes.