Required information Problem 10-75 (LO 10-5) (Algo) [The following information applies to the questions displayed below.] Last Chance Mine (LCM) purchased a coal deposit for $1,334,750. It estimated it would extract 14,050 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.01 million, $4 million, and $2.9 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 ($13,800), $592,500, and $522,500, respectively. In years 1-3, LCM extracted 15,050 tons of coal as follows: (1) Tons of Coal 14,050 (2) Basis $1,334,750 Depletion (2)/(1) Rate $95.00 Year 1 3,600 Tons Extracted per Year Year 2 Year 3 7,550 3,900 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 (Algo) . Using the cost and percentage depletion computations from parts (a) and (b), what is LCM's actual depletion expense for each year? Year 1 Year 2 Year 3 Depletion Expense
Required information Problem 10-75 (LO 10-5) (Algo) [The following information applies to the questions displayed below.] Last Chance Mine (LCM) purchased a coal deposit for $1,334,750. It estimated it would extract 14,050 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.01 million, $4 million, and $2.9 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 ($13,800), $592,500, and $522,500, respectively. In years 1-3, LCM extracted 15,050 tons of coal as follows: (1) Tons of Coal 14,050 (2) Basis $1,334,750 Depletion (2)/(1) Rate $95.00 Year 1 3,600 Tons Extracted per Year Year 2 Year 3 7,550 3,900 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 (Algo) . Using the cost and percentage depletion computations from parts (a) and (b), what is LCM's actual depletion expense for each year? Year 1 Year 2 Year 3 Depletion Expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Problem 10-75 (LO 10-5) (Algo)
[The following information applies to the questions displayed below.]
Last Chance Mine (LCM) purchased a coal deposit for $1,334,750. It estimated it would extract 14,050 tons of coal from the
deposit. LCM mined the coal and sold it, reporting gross receipts of $1.01 million, $4 million, and $2.9 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
($13,800), $592,500, and $522,500, respectively. In years 1-3, LCM extracted 15,050 tons of coal as follows:
(1) Tons of
Coal
14,050
Depletion
(2) Basis (2)/(1) Rate
$1,334,750
$95.00
Year 1
3,600
Tons Extracted per Year
Year 2
Year 3
7,550
3,900
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 (Algo)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe0e52509-0c34-4db6-a100-7b2c97f556f9%2F6aee8cc0-f620-4dd9-ab68-2eb9f82d0049%2F6rys9tb_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Problem 10-75 (LO 10-5) (Algo)
[The following information applies to the questions displayed below.]
Last Chance Mine (LCM) purchased a coal deposit for $1,334,750. It estimated it would extract 14,050 tons of coal from the
deposit. LCM mined the coal and sold it, reporting gross receipts of $1.01 million, $4 million, and $2.9 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
($13,800), $592,500, and $522,500, respectively. In years 1-3, LCM extracted 15,050 tons of coal as follows:
(1) Tons of
Coal
14,050
Depletion
(2) Basis (2)/(1) Rate
$1,334,750
$95.00
Year 1
3,600
Tons Extracted per Year
Year 2
Year 3
7,550
3,900
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 (Algo)
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
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