Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls answer asap Depletion On Januery 2, 2019, Whistler Company porchased land for $470,000, from which it is estimated that 420,000 tons of ore could

pls answer asap image text in transcribed
image text in transcribed
image text in transcribed
Depletion On Januery 2, 2019, Whistler Company porchased land for $470,000, from which it is estimated that 420,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $58,000, after which it could be sold for $30,000. During 2019, Whistler mined 86,000 tans and sold 65,000 tons. During 2020, Whistier mined 112,000 tons and sold 107,000 tons. At the beginning of 2021, Whistier spent an additional $110,000, which increased the reserves by 66,000 tons. In 2021, Whigtier mined 156,000 tons and sold 157,000 tons. Whistler uses a FIFO coet flow assumption. Required: If required, round the depletion rate to the nearest cent and round the final answers to the nearest dollar. 1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021. 2019 Depietion deducted from income is Depletion included in inventory $ 2020 Depietion deducted from income Depletion induded in inventory 2021 Degletion deducted from income $ Complete the natural resources section of the balance shect on December 31,2019,2020, and 2021 , assuming that an accumulated depletion account is used. 3. Assume Whistler's discount rate was 8%. What is the balance in the asset retirement obligation at 2019,2020 , and 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

AS Accounting Determination Of Income Workbook

Authors: I Harrison

1st Edition

1844894835, 978-1844894833

More Books

Students also viewed these Accounting questions