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e Secure https//www.mathad.com/Student/Playerhiomework.aspxPhomeworkld 484897451&questionld-1;&flushed; aisecld 5029871 ACCT 2301.WP Joseph Herman ? 7/4 Homework: Chapter 08 Homework Score: 0 of 2 pts S8-15 (similar to) Smith Ota Texas ou company holds huge reserves of od Asume that atthe end of 2016, Snithor, cost of oe reserves totaled appromately $24 8nlon represe trg 3 1 mion barrow of 04 eserve"he pond 1. Caloulate Smith Oifs depletion expense per barrel of oll 4 of 4 (2 complete) HW Score: 29.17 2. Suppose Smit Od removed 200,000 barres o, od dring 201 7 and sold a·ofthese barrels durgte year RecordSnth ors o pletion expense or 2017 Requirement 1. Calculate Smith Oirs depletion expense per banel of ol. (Enter amounts in dollars and not in milions) Smith Oir's depletion expense per barrel of o is Enter any number in the edit fields and then cick Check Answer Check Clear All

Explanation / Answer

Therefore Depletion expense for 2017 is $1.6 million

in million Total Cost of mineral assets 24.8 Estimated Barrels of oil over the life 3.1 Depletion Expense per barrel 8 Number of Barrels removed in 2017 0.2 Therefore Depletion expense for 2017 ($24.8 million/3.1 million)*0.2 million 1.6

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