On January 2, 2019, Whistler Company purchased land for $530,000, from which it is estimated that 360,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $80,000, after which it could be sold for $26,000.
During 2019, Whistler mined 88,000 tons and sold 72,000 tons. During 2020, Whistler mined 114,000 tons and sold 115,000 tons. At the beginning of 2021, Whistler spent an additional $110,000, which increased the reserves by 54,000 tons. In 2021, Whistler mined 147,000 tons and sold 141,000 tons. Whistler uses a FIFO cost flow assumption.
Required:
If required, round the depletion rate to the nearest cent and round the final answers to the nearest dollar.
2019 | Depletion deducted from income | ||
Depletion included in inventory | |||
2020 | Depletion deducted from income | ||
Depletion included in inventory | |||
2021 | Depletion deducted from income | ||
Depletion included in inventory |
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