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Last Chance Mine (LC) purchased a coal deposit for $1,348,500. It estimated it would extract 14,500 tons of coal from the deposit. LC mined the
Last Chance Mine (LC) purchased a coal deposit for $1,348,500. It estimated it would extract 14,500 tons of coal from the deposit. LC mined the coal and sold it, reporting gross receipts of $1.41 million, $4.8 million, and $3.7 million for years 1 through 3, respectively. During years 1-3, LC reported net income (loss) from the coal deposit activity in the amount of ($10,700), $517,500, and $512,500, respectively. In years 1-3, LC actually extracted 15,500 tons of coal as follows: (Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.) Depletion Tons of Coal 14,500 (2) (1) Tons Extracted per Year Year 1 Year 2 Year 3 7,350 4,900 Basis Rate 1,348,500 $93.00 3,250 Using the cost and percentage depletion computations from the previous parts, what is Last Chance's actual depletion expense for ach year? Depletion Expense Year 2 Last Chance Mine (LC) purchased a coal deposit for $1,348,500. It estimated it would extract 14,500 tons of coal from the deposit. LC mined the coal and sold it, reporting gross receipts of $1.41 million, $4.8 million, and $3.7 million for years 1 through 3, respectively. During years 1-3, LC reported net income (loss) from the coal deposit activity in the amount of ($10,700), $517,500, and $512,500, respectively. In years 1-3, LC actually extracted 15,500 tons of coal as follows: (Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.) Depletion Tons of Coal 14,500 (2) (1) Tons Extracted per Year Year 1 Year 2 Year 3 7,350 4,900 Basis Rate 1,348,500 $93.00 3,250 Using the cost and percentage depletion computations from the previous parts, what is Last Chance's actual depletion expense for ach year? Depletion Expense Year 2
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