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can you help with year 3 ! Required information (The following information applies to the questions displayed below.) Last Chance Mine (LCM) purchased a coal
can you help with year 3
! Required information (The following information applies to the questions displayed below.) Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12,000 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 million for years 1 through 3, respectively. During years 1-3, LCM reported net income (loss) from the coal deposit activity in the amount of ($20,000). $500,000, and $450,000, respectively. In years 1-3, LCM extracted 13,000 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 12,000 (2) Basis $ 750,000 Depletion (2)/(1) Rate $ 62.50 Tons Extracted per Year Year 1 Year 2 Year 3 2,000 7,200 3,800 c. Using the cost and percentage depletion computations from parts (a) and (b). what is LCM's actual depletion expense for each year? Year 1 Year 2 Year 3 Depletion Expense $ 125,000 $ 450,000 $ 225,000 Step by Step Solution
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