Last Chance Mine (LC) purchased a coal deposit for $2,883,500. It estimated it would extract 18,250 tons of coal from the deposit. LC mined the coal and sold it, reporting gross receipts of $1.30 million, $8.35 million, and $6.20 million for years 1 through 3, respectively. During years 13, LC reported net income (loss) from the coal deposit activity in the amount of ($10,400), $520,000, and $282,500, respectively. In years 13, LC actually extracted 19,250 tons of coal as follows:

(1)		(2)	Depletion (2)/(1)	Tons Extracted per Year
Tons of Coal		Basis	Rate	Year 1	Year 2	Year 3
18,250		$2,883,500	$158.00	4,450	10,400	4,400

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

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

c.	Using the cost and percentage depletion computations from the previous parts, what is Last Chances actual depletion expense for each year?