Problem 10-75 (LO 10-5) (Static) [The following information applies to the questions displayed below.] 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 Problem 10-75 Part c (Static) Year 1 Year 2 Year 3 Year 1 2,000 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. $ $ $ Depletion (2) + (1) Rate $ 62.50 c. Using the cost and percentage depletion computations from parts (a) and (b), what is LCM's actual depletion expense for each year?

[The following information applies to the questions displayed below] 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 13, LCM reported net income (loss) from the coal deposit activity in the amount of ($20,000), $500,000, and $450,000, respectively, In years 13, LCM extracted 13,000 tons of coal as follows: Note: Leave no answer blank. Enter zero if applieable. Enter your onswers 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? [The following information applies to the questions displayed below.] 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 13,1CM extracted 13,000 tons of coal as follows: Note: Leove no onswer 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 ? Answer is complete but not entirely correct. [The following information applies to the questions displayed below] 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 13, LCM reported net income (loss) from the coal deposit activity in the amount of ($20,000), $500,000, and $450,000, respectively, In years 13, LCM extracted 13,000 tons of coal as follows: Note: Leave no answer blank. Enter zero if applieable. Enter your onswers 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? [The following information applies to the questions displayed below.] 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 13,1CM extracted 13,000 tons of coal as follows: Note: Leove no onswer 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 ? Answer is complete but not entirely correct