a. What is LCM's cost depletion for years 1, 2, and 3?

b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)?

c. Using the cost and percentage depletion computations from parts (a) and (b), what is LCMs actual depletion expense for each year?

! Required information [The following information applies to the questions displayed below.] Last Chance Mine (LCM) purchased a coal deposit for $1,340,500. It estimated it would extract 19,150 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.04 million, $7 million, and $3 million for years 1 through 3, respectively. During years 13, LCM reported net income (loss) from the coal deposit activity in the amount of ($18,600), $595,000, and $470,000, respectively. In years 13, LCM extracted 20,150 tons of coal as follows: (Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.) (1) Tons of Coal 19,150 (2) Basis $1,340,500 Depletion (2)/(1) Rate $70.00 Tons Extracted per Year Year 1 Year 2 Year 3 2,700 11,750 5,700 a. What is LCM's cost depletion for years 1, 2, and 3? Cost Depletion Year 1 Year 2 Year 3