Depletion On January 2, 2016, Salt Company purchased land for$490000, from which it is estimated that 350000 tons of ore couldbe extracted. It estimates that the present value of the costnecessary to restore the land is $90000, after which it could besold for $36000. During 2016, Salt mined 85000 tons and sold 73000tons. During 2017, Salt mined 111000 tons and sold 112000 tons. Atthe beginning of 2018, Salt spent an additional $80000, whichincreased the reserves by 70000 tons. In 2018, Salt mined 144000tons and sold 138000 tons. Salt uses a FIFO cost flow assumption.Required: If required, round your final answers to the nearestdollar and round the depletion rate per ton to the nearest cent. 1.Calculate the depletion included in the income statement and endinginventory for 2016, 2017, and 2018. Round the depletion rate to thenearest cent. If required, round the final answers to the nearestdollar. 2016 Depletion deducted from income $ Depletion included ininventory $ 2017 Depletion deducted from income $ Depletionincluded in inventory $ 2018 Depletion deducted from income $Depletion included in inventory $ 2. Complete the natural resourcessection of the balance sheet on December 31, 2016, 2017, and 2018,assuming that an accumulated depletion account is used. Round thedepletion rate per to the nearest cent. If required, round thefinal answers to the nearest dollar. Salt Company Balance Sheet(partial) December 31, 2016 - 2018 December 31, 2016 Mineral oreresources $ Less: Accumulated depletion $ December 31, 2017 Mineralore resources $ Less: Accumulated depletion $ December 31, 2018Mineral ore resources $ Less: Accumulated depletion $ Feedback 3.Assume Whistler's discount rate was 9%. What is the balance in theasset retirement obligation at 2016, 2017, and 2018? If required,round your answers to the nearest dollar. Salt Company Assetretirement obligation 2016 - 2018 December 31, 2016 $ December 31,2017 $ December 31, 2018 $ Feedback Check My Work
