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Last Chance Mine (LCM) purchased a coal deposit for $2,918,300. It estimated it would extract 18,950 tons of coal from the deposit. LCM mined the

Last Chance Mine (LCM) purchased a coal deposit for $2,918,300. It estimated it would extract 18,950 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.24 million, $13 million, and $11 million for years 1 through 3, respectively. During years 13, LCM reported net income (loss) from the coal deposit activity in the amount of ($11,400), $550,000, and $502,500, respectively. In years 13, LCM actually extracted 19,950 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) (2) Depletion (2)/(1) Tons Extracted per Year
Tons of Coal Basis Rate Year 1 Year 2 Year 3
18,950 $2,918,300 $154.00 4,500 8,850 6,600

a. What is LCM's cost depletion for years 1, 2, and 3?

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