Last Chance Mine (LCM) purchased a coal deposit for $1,117,500. It estimated it would extract 14,900 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.13 million, $7.25 million, and $5.7 million for years 1 through 3, respectively. During years 13, LCM reported net income (loss) from the coal deposit activity in the amount of ($17,200), $582,500, and $535,000, respectively. In years 13, LCM actually extracted 15,900 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
14,900	$1,117,500	$75.00	3,300	7,500	5,100

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?