On January $2,$ Year $1,$ Whistler Company purchased land for $$450,000,$ from which it is estimated that $450,000$ tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $$56,000,$ after which it could be sold for $$21,000.$

During Year $1,$ Whistler mined $79,000$ tons and sold $69,000$ tons. During Year $2,$ Whistler mined $109,000$ tons and sold $101,000$ tons. At the beginning of Year $3,$ Whistler spent an additional $$120,000,$ which increased the reserves by $53,000$ tons. In Year $3,$ Whistler mined $143,000$ tons and sold $146,000$ tons. Whistler uses a FIFO cost flow assumption.

Required:

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

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$1.$ Calculate the depletion included in the income statement and ending inventory for Year $1,$ Year $2,$ and Year $3.$

Year $1$ Depletion deducted from income $

Depletion included in inventory $

Year $2$ Depletion deducted from income $

Depletion included in inventory $

Year $3$ Depletion deducted from income $

Depletion included in inventory $

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$2.$ Complete the natural resources section of the balance sheet on December $31,$ Year $1,$ Year $2,$ and Year $3,$ assuming that an accumulated depletion account is used.

Whistler Company

Balance Sheet $($partial$)$

December $31,$ Year $1-$ Year $3$

December $31,$ Year $1$

Mineral ore resources $fill in the blank $103$deffc$7008066\_1$

Less: Accumulated depletion fill in the blank $103$deffc$7008066\_2$

$fill in the blank $103$deffc$7008066\_3$

December $31,$ Year $2$

Mineral ore resources $fill in the blank $103$deffc$7008066\_4$

Less: Accumulated depletion fill in the blank $103$deffc$7008066\_5$

$fill in the blank $103$deffc$7008066\_6$

December $31,$ Year $3$

Mineral ore resources $fill in the blank $103$deffc$7008066\_7$

Less: Accumulated depletion fill in the blank $103$deffc$7008066\_8$

$fill in the blank $103$deffc$7008066\_9$

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$3.$ Assume Whistler's discount rate was $9\%.$ What is the balance in the asset retirement obligation at Year $1,$ Year $2,$ and Year $3?$

Whistler Company

Asset retirement obligation

Year $1-$ Year $3$

December $31,$ Year $1$ $fill in the blank $4$e$8$d$7$cfdafa$800$f$\_1$

December $31,$ Year $2$ $fill in the blank $4$e$8$d$7$cfdafa$800$f$\_2$

December $31,$ Year $3$ $fill in the blank $4$e$8$d$7$cfdafa$800$f$\_3$