On March 1, 2016, Anniston Company purchased an oil well at a cost of $1,000,000. It is estimated that 150,000 barrels of oil can be produced over the remaining life

On March 1, 2016, Anniston Company purchased an oil well at a cost of $1,000,000. It is estimated that 150,000 barrels of oil can be produced over the remaining life of the well and the residual value of the well will be $100,000. During 2016, 15,000 barrels of oil were produced and 10,000 barrels were sold. Which of the following statements is correct with respect to accounting for the well? A- The inventory of oil was $30,000 at December 31, 2016 B- The 2016 cost of goods sold was $90,000 C- The book value of the oil well decreased $60,000 during 2016 D- The cost of goods sold was $30,000

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