Last Chance Mine (LCM) purchased a coal deposit for $1,340,500. It estimated it would extract 19,150 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.04 million, $7 million, and $3 million for years 1 through 3, respectively. During years 13, LCM reported net income (loss) from the coal deposit activity in the amount of ($18,600), $595,000, and $470,000, respectively. In years 13, LCM extracted 20,150 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	(2) Basis	Depletion (2)/(1) Rate	Tons Extracted per Year
			Year 1	Year 2	Year 3
19,150	$1,340,500	$70.00	2,700	11,750	5,700

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

	Percentage Depletion
Year 1	$0
Year 2
Year 3