Required information [The following information applies to the questions displayed below.) 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 1-3, LCM reported net income (loss) from the coal deposit activity in the amount of ($14,000), $627,500, and $445,000, respectively. In years 1-3, LCM actually extracted 21,000 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) Tons of Coal 20,000 (2) Basis $2,720,000 Depletion (2)/(1) Rate $136.00 Tons Extracted per Year Year 1 Year 2 Year 3 4,850 11,300 4,850 a. What is LCM's cost depletion for years 1, 2, and 3? Year Cost Depletion 2 3 b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)? Percentage Depletion Year 1 2 3 c. Using the cost and percentage depletion computations from parts (a) and (b), what is LCM's actual depletion expense for each year? Year Depletion TeamExpense 2 3