Question

Required information [The following information applies to the questions displayed below.) Last Chance Mine (LCM) purchased a coal deposit for $1,117,500. It estimated it would extract 14,900 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.13 million, $7.25 million, and $5.7 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 ($17,200), $582,500, and $535,000, respectively. In years 1–3, LCM actually extracted 15,900 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 14,900 (2) Basis $1,117,500 Depletion (2)/(1) Rate $75.00 Tons Extracted per Year Year 1 Year 2 Year 3 3,300 7,500 5,100 a. What is LCM's cost depletion for years 1, 2, and 3? Year Cost Depletion N| دی

Answer 1

Answef- Partculas year year 2 yar 3 Tons Extraded Sloo 3300 500 (2 Depletion a te $307S00 COme $u,0 56200 (3) Depleton moat deplefion mettocl, The amovhzation ic hmtzd Under ke Cost to t coSt bais in t natunal vesoun ce $562,S0o 307, sU