Answer: Please see answer below
Explanation:
<u>Oil Reserve </u>$3,000,000 for year 1, 2, 3
<u> Accumulated Depletion </u>
Year 1 = $3,000,000/50,000 X 10,000= $600,000
Year 2 = 3,000,000/50,000 X 30,000+600,000=$2,400,000
Year 3 =3,000,000/50,000 X 10,000+ 2,400,000= $3,000,000
<u>Oil Reserve</u>
Year 1 =$3000000- $600,000=$2,400,000
Year 2, $3,000,000- $2,400,000=$600,000
Year 3= $3,000,000 -$3, 000,000=$0
<u>Net Oil Inventory</u>
Year 1= $600,000
Year 2 $2,400,000
Year 3= $3,000,000
Year 1 Year 2 Year 3
Oil Reserve $3,000,000 $3,000,000 $3,000,000
Accumulated Depletion $600,000 $2,400,000 $3,000,000
Oil Reserve, $2,400,000 $600,000 $0
Net Oil Inventory $600,000 $2,400,000 $3,000,000
