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On January 2, 2013, Spring Company purchased land for $500,000, from which it is estimated that 430,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $71,000, after which it could be sold for $26,000. During 2013, Spring mined 80,000 tons and sold 51,000 tons. During 2014, Spring mined 102,000 tons and sold 114,000 tons. At the beginning of 2015, Spring spent an additional $100,000, which increased the reserves by 50,000 tons. In 2015, Spring mined 132,000 tons and sold 132,000 tons. Spring uses a FIFO cost flow assumption.

1. Calculate the depletion included in the income statement and ending inventory for 2013, 2014, and 2015. Round the depletion rate to the nearest cent. If required, round the final answers to the nearest dollar.

2013	Depletion deducted from income	$ 64770
	Depletion included in inventory	$ 36830
2014	Depletion deducted from income	$ 144780
	Depletion included in inventory	$ 21590

2015	Depletion deducted from income	$ ??
	Depletion included in inventory	$ ??

2. Complete the natural resources section of the balance sheet on December 31, 2013, 2014, and 2015, assuming that an accumulated depletion account is used. Round the depletion rate per to the nearest cent. If required, round the final answers to the nearest dollar.

Spring Company
Balance Sheet (partial)
December 31, 2013 - 2015
December 31, 2013
Mineral ore resources		$		??
Less: Accumulated depletion				??
				$ ??
December 31, 2014
Mineral ore resources		$		??
Less: Accumulated depletion				??
				$ ??
December 31, 2015
Mineral ore resources		$		??
Less: Accumulated depletion				??
				$??

3. Assume Whistler's discount rate was 8%. What is the balance in the asset retirement obligation at 2013, 2014, and 2015? If required, round your answers to the nearest dollar.

Spring Company
Asset retirement obligation
2013 - 2015
December 31, 2013		$ ??
December 31, 2014		$ ??
December 31, 2015		$ ??

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