In January 2018, Flamingo Mining Corporation purchased a mineral mine for $2,000,000 with removable ore estimated by geological surveys at 4,000,000 tons. The property has an estimated value of $60,000 after the ore has been extracted. The company incurred $150,000 of development costs preparing the property for the extraction of ore. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $80,000. During 2018, 340,000 tons were removed and 240,000 tons were sold. For the year ended December 31, 2018, the company should include what amount of depletion in its ending Inventory? $54,250 $189,550 $55.750 $184,450 Swift Corporation purchased equipment in 2017 at a cost of $700,000. Three years later it became apparent to the company that this equipment had suffered an impairment of value in early 2020, the book value of the asset is $430,000 and the estimated fair value is only $360,000. The entry to record the impairment is: DR: Loss on Impairment of Equipment 70,000 CR: Accumulated Depreciation 70,000 No entry is necessary as a write-off violates the historical cost principle. DR: Retained Earnings 70,000; CR: Accumulated Depreciation 70,000 DR: Unrealized Loss on Impairment of Equipment 70,000; CR: Accumulated Depreciation 70,000