On March 1, 2022, 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 2022, 15,000 barrels of oil were produced and all of thee barrels were sold. Which of the following statements is incorrect with respect to the accounting for the oil well?
a. The depletion rate is $6.00 per barrel of oil
b. The 2022 cost of goods sold was $90,000
c. The inventory of oil was $90,000 at December 31,2022
d.The book value of the oil well decreased $90,000 during 2022