A relatively small privately owned coal-mining company has the sales results summarized below. Determine the annual percentage depletion for the coal mine. Assume the companys taxable income is $120,000 each year.

Year	Sales, Tons	Spot Sales Price, $/Ton
1	34,300	9.82
2	50,100	13
3	71,900	11.23

Year	Gross Income, $	Depletion amount	50% of the taxable amount	Allowed Depletion
1
2
3