Question 1 On October 17, 20X0, Izzy Co purchased rights to mine diamonds on Saskatchewan farmland for $1,800,000. At the time, Izzy Co expected that there were 1 million carats of diamonds on the farmland. Izzy's year end is December 31. 50,000 karats were mined in 20x0 and none were sold. On Jan 1, 20X1, Izzy expects there are 900,000 karats left in the mine. 100,000 karats were mined in 20X1 and 40,000 karats were sold. On Jan 1, 20X2, Izzy estimates there are 870,000 karats left in the mine. 180,000 karats were mined in 20x2 and 100,000 were sold. Required: (a) Calculate the depletion rate at October 17, 20x0. (b) Prepare journal entries for each of the three years to recognize depletion. (c) Calculate the balance of the inventory account for depletion at December 31, 20X1. Izzy uses FIFO to account for cost of goods sold