Answer:
Depletion expense is $16,800,000
Explanation:
2018 depletion expense=total oil reserves cost*quantity removed/total reserves
total oil reserves cost is $252,000,000
quantity removed in 2018 12,000,000 barrels
total oil reserves is 180,000,000 barrels
2018 depletion expense =$252,000,0000*12,000,0000/180,000,000
=$16,800,000
The depletion expense to charge against revenue in 2018 in order to arrive at net income is $16,800,000
