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Last Chance Mine (LCM) purchased a coal deposit for $1,654,350. It estimated it would extract 13,450 tons of coal from the deposit. LCM mined the
Last Chance Mine (LCM) purchased a coal deposit for $1,654,350. It estimated it would extract 13,450 tons of coal from the deposit. LCM mined the coal and sold It, reporting gross recelpts of $1.35 million, $6.25 million, and $5.2 million for years 1 through 3 , respectlvely. During years 1-3, LCM reported net Income (loss) from the coal deposit activity in the amount of ($16,400),$705,000, and $577,500, respectlvely. In years 13, LCM extracted 14,450 tons of coal as follows: Note: Leave no answer blank. Enter zero if appllcable. Enter your answers in dollars and not in milllons of dollars. . What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)
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