Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12,000...

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Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12,000 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 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 ($20,000). $500,000, and $450,000, respectively. In years 1-3, LCM extracted 13,000 tons of coal as follows: (1) Tons of Coal 12,000 (2) Basis: $ 750,000 Depletion (2)/(1) Rate $ 62.50 Year 1 2,000 Tons Extracted per Year Year 2 Year 3 7,200 3,800 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. Problem 10-75 Part a (Static) a. What is LCM's cost depletion for years 1, 2, and 3? Cost Depletion Year 1 Year 2 Year 3 Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12,000 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 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 ($20,000). $500,000, and $450,000, respectively. In years 1-3, LCM extracted 13,000 tons of coal as follows: (1) Tons of Coal 12,000 (2) Basis $750,000 Depletion (2)/(1) Rate $ 62.50 Year 1 2,000 Tons Extracted per Year Year 2 Year 3 7,200 3,800 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. Problem 10-75 Part b (Static) b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)? Year 1 Percentage Depletion Year 2 Year 3 Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12,000 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 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 ($20,000). $500,000, and $450,000, respectively. In years 1-3, LCM extracted 13,000 tons of coal as follows: (1) Tons of Coal (2) Basis $ 750,000 Depletion (2)/(1) Rate $ 62.50 Year 1 2,000 Tons Extracted per Year Year 2 7,200 Year 3 3,800 12,000 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. Problem 10-75 Part c (Static) c. Using the cost and percentage depletion computations from parts (a) and (b), what is LCM's actual depletion expense for each year? Year 1 Depletion Expense Year 2 Year 3 Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12,000 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 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 ($20,000). $500,000, and $450,000, respectively. In years 1-3, LCM extracted 13,000 tons of coal as follows: (1) Tons of Coal 12,000 (2) Basis: $ 750,000 Depletion (2)/(1) Rate $ 62.50 Year 1 2,000 Tons Extracted per Year Year 2 Year 3 7,200 3,800 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. Problem 10-75 Part a (Static) a. What is LCM's cost depletion for years 1, 2, and 3? Cost Depletion Year 1 Year 2 Year 3 Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12,000 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 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 ($20,000). $500,000, and $450,000, respectively. In years 1-3, LCM extracted 13,000 tons of coal as follows: (1) Tons of Coal 12,000 (2) Basis $750,000 Depletion (2)/(1) Rate $ 62.50 Year 1 2,000 Tons Extracted per Year Year 2 Year 3 7,200 3,800 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. Problem 10-75 Part b (Static) b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)? Year 1 Percentage Depletion Year 2 Year 3 Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12,000 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 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 ($20,000). $500,000, and $450,000, respectively. In years 1-3, LCM extracted 13,000 tons of coal as follows: (1) Tons of Coal (2) Basis $ 750,000 Depletion (2)/(1) Rate $ 62.50 Year 1 2,000 Tons Extracted per Year Year 2 7,200 Year 3 3,800 12,000 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. Problem 10-75 Part c (Static) c. Using the cost and percentage depletion computations from parts (a) and (b), what is LCM's actual depletion expense for each year? Year 1 Depletion Expense Year 2 Year 3