Aerial Company acquired and containing natural resources that planned to extract for 55 million onlamary Burcle 12.40 1.30.30. The man allocated to the land in 2000 Surveys estimate that the recoverable serves will total Delton million tons. The company paid analitional $400,000 for development to prepare for the extraction of the Deprecation srce. The company also incurred S200,000 to build roads with a useful life of year. The roads will not be and Ending wat for other projects. The company is obligated to restore the site alter the extraction of resources. The presen wory L010 male of this obligation is $50,000. 480.000 tons of natural resources were extracted in 2000 and 450,000 tons were sold in 2020, Required Determine depletion for the natural resource in 2020. Assuming that the company depreciate the cost of roads using units-of-production, determine depreciation expense for 2020 c. Compute cost of goods sold for 2020. and ending inventory on December 31, 2020 (S thousands 1.48237 0.07895 Aerial Company acquired land containing natural resources that it planned to extract for $5 million on January Exercise 12-8- 1.2020. The amount allocated to the land is $200,000. Surveys estimate that the recoverable reserves will total Calculating Der 4 million tons. The company paid an additional $400,000 for development to prepare for the extraction of the Depreciation and Ending resources. The company also incurred $200,000 to build roads with a useful life of 8 years. The roads will not be Inventory LC used for other projects. The company is obligated to restore the site after the extraction of resources. The present value of this obligation is $50,000. 480,000 tons of natural resources were extracted in 2020 and 450,000 tons were sold in 2020. Required 4. Determine depletion for the natural resource in 2020. 6. Assuming that the company depreciates the cost of roads using units-of-production, determine depreciation expense for 2020. c. Compute cost of goods sold for 2020, and ending inventory on December 31, 2020. allocated Exercise 12