1. On January 2, 2019, Whistler Company purchased land for $500,000, from which it is estimated that 420,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $53,000, after which it could be sold for $26,000.

During 2019, Whistler mined 88,000 tons and sold 76,000 tons. During 2020, Whistler mined 117,000 tons and sold 105,000 tons. At the beginning of 2021, Whistler spent an additional $80,000, which increased the reserves by 59,000 tons. In 2021, Whistler mined 167,000 tons and sold 161,000 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.

1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021.

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	$

2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used.

Whistler Company
Balance Sheet (partial)
December 31, 2019 - 2021
December 31, 2019
Mineral ore resources	$
Less: Accumulated depletion
		$
December 31, 2020
Mineral ore resources	$
Less: Accumulated depletion
		$
December 31, 2021
Mineral ore resources	$
Less: Accumulated depletion
		$

3. Assume Whistler's discount rate was 9%. What is the balance in the asset retirement obligation at 2019, 2020, and 2021?

Whistler Company
Asset retirement obligation
2019 - 2021
December 31, 2019	$
December 31, 2020	$
December 31, 2021	$