On January 2, 2019, 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 2019, Whistler mined 80,000 tons and sold 50,000 tons. During 2020, Whistler mined 100,000 tons and sold 120,000 tons. At the beginning of 2021, Whistler spent an additional $100,000, which increased the reserves by 60,000 tons. In 2021, Whistler mined 140,000 tons and sold 130,000 tons. Whistler uses a FIFO cost flow assumption. Need help with question number 2. Thank you
On January 2, 2019, 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 2019, Whistler mined 80,000 tons and sold 50,000 tons. During 2020, Whistler mined 100,000 tons and sold 120,000 tons. At the beginning of 2021, Whistler spent an additional $100,000, which increased the reserves by 60,000 tons. In 2021, Whistler mined 140,000 tons and sold 130,000 tons. Whistler uses a FIFO cost flow assumption. Need help with question number 2. Thank you
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 2MC: The following items were included in Venicio Corporations inventory account on December 31, 2019:...
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On January 2, 2019, 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 2019, Whistler mined 80,000 tons and sold 50,000 tons. During 2020, Whistler mined 100,000 tons and sold 120,000 tons. At the beginning of 2021, Whistler spent an additional $100,000, which increased the reserves by 60,000 tons. In 2021, Whistler mined 140,000 tons and sold 130,000 tons. Whistler uses a FIFO cost flow assumption.
Need help with question number 2. Thank you
![2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used.
WHISTLER COMPANY
Balance Sheet (partial)
December 31, 2019 - 2021
December 31, 2019
Mineral ore resources
Less: Accumulated depletion
December 31, 2020
Mineral ore resources
Less: Accumulated depletion
December 31, 2021
Mineral ore resources
Less: Accumulated depletion](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0cdc7d66-e52b-4718-91e7-a068136a04a4%2F6bd81fc6-5648-4d78-bce2-a86ecde8de96%2Fxchs0hg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Complete the natural resources section of the balance sheet on December 31, 2019, 2020, and 2021, assuming that an accumulated depletion account is used.
WHISTLER COMPANY
Balance Sheet (partial)
December 31, 2019 - 2021
December 31, 2019
Mineral ore resources
Less: Accumulated depletion
December 31, 2020
Mineral ore resources
Less: Accumulated depletion
December 31, 2021
Mineral ore resources
Less: Accumulated depletion
![1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021.
2019 Depletion deducted from income $
62,500
Depletion included in inventory $
37,500
2020 Depletion deducted from income $
150,000
Depletion included in inventory
12,500
2021
Depletion deducted from income
173,300
Depletion included in inventory
26,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0cdc7d66-e52b-4718-91e7-a068136a04a4%2F6bd81fc6-5648-4d78-bce2-a86ecde8de96%2Fz8fv1xk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021.
2019 Depletion deducted from income $
62,500
Depletion included in inventory $
37,500
2020 Depletion deducted from income $
150,000
Depletion included in inventory
12,500
2021
Depletion deducted from income
173,300
Depletion included in inventory
26,800
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