Exercise 7 On January 2, 2020, Whistler Company purchased land for $450,000, from which it is estimated that 400,000 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 $30,000. During 2020, Whistler mined 80,000 tons and sold 50,000 tons. During 2021, Whistler mined 100,000 tons and sold 120,000 tons. Whistler uses a FIFO cost flow assumption. Instructions: (a) Calculate the depletion included in the income statement and ending inventory for 2020 and 2021. Round the depletion rate to 2 decimal places. (b) Prepare the natural resources section of the balance sheet on December 31, 2020 and 2021, assuming that an accumulated depletion account is used. Exercise 7 On January 2, 2020, Whistler Company purchased land for $450,000, from which it is estimated that 400,000 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 $30,000. During 2020, Whistler mined 80,000 tons and sold 50,000 tons. During 2021, Whistler mined 100,000 tons and sold 120,000 tons. Whistler uses a FIFO cost flow assumption. Instructions: (a) Calculate the depletion included in the income statement and ending inventory for 2020 and 2021. Round the depletion rate to 2 decimal places. (b) Prepare the natural resources section of the balance sheet on December 31, 2020 and 2021, assuming that an accumulated depletion account is used