2125Civil EngineeringMedium
The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion?
A$ 5,050,000.00
B$ 5,025,000.00
C$ 5,010,000.00
D$ 5,000,000.00
Correct answer
D. $ 5,000,000.00
Explanation
The correct answer is $ 5,000,000.00.