Calculating Depletion, Depreciation, and Ending Inventory Aerial Company acquired land containing natural resources that it planned to extract for $5 million on January 1, 2020. The amount allocated to the land is $200,000. Surveys estimate that the recoverable reserves will total 4 million tons. The company paid an additional $400,000 for development to prepare for the extraction of the resources. The company also incurred $200,000 to build roads with a useful life of 8 years. The roads will not be 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 a. Determine depletion for the natural resource in 2020. Note: Round the depletion rate to two decimals in your calculations, for example, use a depletion rate of 1.42 for 1.424, or 1.43 for 1.425. $ 441,000 X b. Assuming that the company depreciates the cost of roads using units-of-production, determine depreciation expense for 2020. $ 16,800 x C. Compute cost of goods sold for 2020, and ending inventory on December 31, 2020. Note: Round the depletion rate to two decimals in your calculations; for example, use a depletion rate of 1.42 for 1.424, or 1.43 for 1.425. Cost of goods sold $ 413,438 X Ending inventory $ 27,562.5 X