Question
Last Chance Mine (LCM) purchased a coal deposit for $2,464,800. It estimated it would extract 15,800 tons of coal from the deposit. LCM mined the
Last Chance Mine (LCM) purchased a coal deposit for $2,464,800. It estimated it would extract 15,800 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.20 million, $10 million, and $5.9 million for years 1 through 3, respectively. During years 1-3, LCM reported net income (loss) from the coal deposit activity in the amount of ($17,900), $605,000, and $532,500, respectively. In years 1-3, LCM actually extracted 16,800 tons of coal as follows:(Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.)
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