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Last Chance Mine (LCM) purchased a coal deposit for $2,720,000. It estimated it would extract 20,000 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.45 million, $6 million, and $4.6 million for years 1 through 3, respectively. During years 13, LCM reported net income (loss) from the coal deposit activity in the amount of ($14,000), $627,500, and $445,000, respectively. In years 13, LCM extracted 21,000 tons of coal as follows:

(1) Tons of Coal	(2) Basis	Depletion (2)(1) Rate	Tons Extracted per Year
Year 1	Year 2	Year 3
20,000	$2,720,000	$136.00	4,850	11,300	4,850

Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.

b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)?

\begin{tabular}{|l|l|} \hline & \begin{tabular}{c} Percentage \\ Depletion \end{tabular} \\ \hline Year 1 & \\ \hline Year 2 & \\ \hline Year 3 & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline & \begin{tabular}{c} Percentage \\ Depletion \end{tabular} \\ \hline Year 1 & \\ \hline Year 2 & \\ \hline Year 3 & \\ \hline \end{tabular}