On January 2, 2016, Billson Company purchased land for $480000, from which it is estimated that 450000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $58000, after which it could be sold for $37000.

During 2016, Billson mined 77000 tons and sold 52000 tons. During 2017, Billson mined 107000 tons and sold 102000 tons. At the beginning of 2018, Billson spent an additional $110000, which increased the reserves by 69000 tons. In 2018, Billson mined 152000 tons and sold 166000 tons. Billson uses a FIFO cost flow assumption.

Required:

If required, round your final answers to the nearest dollar and round the depletion rate per ton to the nearest cent.

1. Calculate the depletion included in the income statement and ending inventory for 2016, 2017, and 2018. Round the depletion rate to the nearest cent. If required, round the final answers to the nearest dollar.

2016	Depletion deducted from income	$
	Depletion included in inventory	$
2017	Depletion deducted from income	$
	Depletion included in inventory	$
2018	Depletion deducted from income	$
	Depletion included in inventory	$

2. Complete the natural resources section of the balance sheet on December 31, 2016, 2017, and 2018, assuming that an accumulated depletion account is used. Round the depletion rate per to the nearest cent. If required, round the final answers to the nearest dollar.

Billson Company
Balance Sheet (partial)
December 31, 2016 - 2018
December 31, 2016
Mineral ore resources	$
Less: Accumulated depletion
		$
December 31, 2017
Mineral ore resources	$
Less: Accumulated depletion
		$
December 31, 2018
Mineral ore resources	$
Less: Accumulated depletion
		$

3. Assume Whistler's discount rate was 10%. What is the balance in the asset retirement obligation at 2016, 2017, and 2018? If required, round your answers to the nearest dollar.

Billson Company
Asset retirement obligation
2016 - 2018
December 31, 2016	$
December 31, 2017	$
December 31, 2018	$