E 11-16 On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus addi- Depletion tional costs necessary to prepare the mine for extraction of the coal totaled S4,500,000. The company expects to extract L011-3 900,000 tons of coal during a four-year period. During 2021, 240,000 tons were extracted and sold immediately. Required: 1. Calculate depletion for 2021. 2. Is depletion considered part of the product cost and included in the cost of inventory (yeso)? Discuss. E 11-17 At the beginning of 2021, Terra Lumber Company purchased a timber tract from Boise Cantor for $3,200,000. Depreciation and After the timber is cleared, the land will have a residual value of $600,000. Roads to enable logging operations depletion were constructed and completed on March 30, 2021. The cost of the roads, which have no residual value and no L011-2, L011-3 alternative use after the tract is cleared, was $240,000. During 2021, Terra logged 500,000 of the estimated five million board feet of timber Required: Calculate the 2021 depletion of the timber tract and depreciation of the logging roads assuming the units-of- production method is used for both assets