Reference no: EM133087805

Question - On January 2, 2019, Whistler Company purchased land for $450,000, from which it is estimated that 450,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $52,000, after which it could be sold for $40,000.

During 2019, Whistler mined 76,000 tons and sold 48,000 tons. During 2020, Whistler mined 99,000 tons and sold 106,000 tons. At the beginning of 2021, Whistler spent an additional $120,000, which increased the reserves by 67,000 tons. In 2021, Whistler mined 146,000 tons and sold 137,000 tons. Whistler uses a FIFO cost flow assumption.

Required - Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021.