Required information [The following information applies to the questions displayed below] Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12.000 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 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 ($20,000) $500,000, and $450,000, respectively. In years 1-3, LCM actually extracted 13,000 tons of coal as follows: (Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.) Year 1 2 3 (3) Tons of Coal 12,000 (2) Basis $750,000 Depletion (2)/(1) Rate $62.50 b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent? Percentage Depletion Tons Extracted per Year Year 11 Year 2 2,000 7,200 Year 3 3,000
Required information [The following information applies to the questions displayed below] Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12.000 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 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 ($20,000) $500,000, and $450,000, respectively. In years 1-3, LCM actually extracted 13,000 tons of coal as follows: (Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.) Year 1 2 3 (3) Tons of Coal 12,000 (2) Basis $750,000 Depletion (2)/(1) Rate $62.50 b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent? Percentage Depletion Tons Extracted per Year Year 11 Year 2 2,000 7,200 Year 3 3,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12.000 tons of coal from the
deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 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 ($20,000).
$500,000, and $450,000, respectively. In years 1-3, LCM actually extracted 13,000 tons of coal as follows: (Leave no
answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.)
(3)
Tons of Coal
12,000
Year
1
2
3
Depletion
(2)
(2)/(1)
Basis
Rate
$750,000 $62.50
Tons Extracted per Year
Year 1 Year 21 Year 3
2,000 7,200 3,800
b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)?
Percentage
Depletion](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff643a1e7-ceca-4dbf-b394-caad4b5371a1%2Fab402b2c-fdf9-4ae2-b8e5-dd51c7057e48%2Fzh6feu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Last Chance Mine (LCM) purchased a coal deposit for $750,000. It estimated it would extract 12.000 tons of coal from the
deposit. LCM mined the coal and sold it, reporting gross receipts of $1 million, $3 million, and $2 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 ($20,000).
$500,000, and $450,000, respectively. In years 1-3, LCM actually extracted 13,000 tons of coal as follows: (Leave no
answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.)
(3)
Tons of Coal
12,000
Year
1
2
3
Depletion
(2)
(2)/(1)
Basis
Rate
$750,000 $62.50
Tons Extracted per Year
Year 1 Year 21 Year 3
2,000 7,200 3,800
b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)?
Percentage
Depletion
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