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Depletion On January 2, 2016, Whistler Company purchased land for $450,000, from which it is...

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Depletion On January 2, 2016, Whistler Company purchased land for $450,000, from which it is estimated that 400,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $80,000, after which it could be sold for $30,000. During 2016, Whistler mined 80,000 tons and sold 50,000 tons. During 2017, Whistler mined 100,000 tons and sold 120,000 tons. At the beginning of 2018, Whistler spent an additional $100,000, which increased the reserves by 60,000 tons. In 2018, Whistler mined 140,000 tons and sold 130,000 tons. Whistler uses a FIFO cost flow assumption. Required: 1. Calculate the depletion included in the income statement and ending inventory for 2016, 2017, and 2018. 2. Prepare the natural resources section of the balance sheet on December 31, 2016, 2017, and 2018, assuming 3. Assume whistler's discount rate was 8%, what is the balance in the asset retirement obligation at 2016,2017, Round the depletion rate to 2 decimal places. that an accumulated depletion account is used. and 2018

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