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 $1,952,850. It estimated it would extract 13,850 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.38 million, $11 million, and $4 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 ($18,200), $665,000, and $550,000, respectively. In years 1-3, LCM actually extracted 14,850 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 13,850 (2) Depletion (2)/(1) Basis Rate $1,952,850 $141.00 2,100 Tons Extracted per Year Year 1 Year 2 9,050 Year 3 3,700 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 Depletion Expense 1 2 3
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 $1,952,850. It estimated it would extract 13,850 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.38 million, $11 million, and $4 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 ($18,200), $665,000, and $550,000, respectively. In years 1-3, LCM actually extracted 14,850 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 13,850 (2) Depletion (2)/(1) Basis Rate $1,952,850 $141.00 2,100 Tons Extracted per Year Year 1 Year 2 9,050 Year 3 3,700 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 Depletion Expense 1 2 3
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 $1,952,850. It estimated it would extract 13,850 tons of coal from the
deposit. LCM mined the coal and sold it, reporting gross receipts of $1.38 million, $11 million, and $4 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
($18,200), $665,000, and $550,000, respectively. In years 1-3, LCM actually extracted 14,850 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
(2)
Basis
13,850
Depletion
(2)/(1)
Rate
$1,952,850 $141.00
2,100
Tons Extracted per Year
Year 1 Year 2 Year 3
9,050 3,700
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?
Depletion
Year
Expense
1
2
3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84e25eba-2199-4cac-a9a3-b38f52d80f20%2F7b86225b-d4fa-4361-b0e2-0f9e5eed8ec4%2F2i1cm6o_processed.jpeg&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 $1,952,850. It estimated it would extract 13,850 tons of coal from the
deposit. LCM mined the coal and sold it, reporting gross receipts of $1.38 million, $11 million, and $4 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
($18,200), $665,000, and $550,000, respectively. In years 1-3, LCM actually extracted 14,850 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
(2)
Basis
13,850
Depletion
(2)/(1)
Rate
$1,952,850 $141.00
2,100
Tons Extracted per Year
Year 1 Year 2 Year 3
9,050 3,700
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?
Depletion
Year
Expense
1
2
3
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