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Last Chance Mine ( LCM ) purchased a coal deposit for $ 1 , 1 0 8 , 2 5 0 . It estimated it
Last Chance Mine LCM purchased a coal deposit for $ It estimated it would extract tons of coal from the deposit. LCM mined the coal and sold it reporting gross receipts of $ million, $ million, and $ million for years through respectively. During years LCM reported net income loss from the coal deposit activity in the amount of $ $ and $ respectively. In years LCM extracted tons of coal as follows:
Tons of Coal Basis Depletion : Rate Tons Extracted per Year
Year Year Year
$ $
Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.
c Using the cost and percentage depletion computations from parts a and b what is LCMs actual depletion expense for each year?
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