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Problem 10-75 (LO 10-5) (Static) [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 extracted 13,000 tons of coal as follows: (1) Tons of Coal 12,000 (2) Basis $ 750,000 Depletion (2) (1) Rate $ 62.50 Problem 10-75 Part a (Static) Year 1 Year 2 Year 3 Year 1 2,000 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. a. What is LCM's cost depletion for years 1, 2, and 3. year 3 is incorrect.

Problem 10-75 (LO 10-5) (Static) [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 13, LCM reported net income (loss) from the coal deposit activity in the amount of ($20,000). $500,000, and $450,000, respectively. In years 13, LCM extracted 13,000 tons of coal as follows: Note: Leave no answer blank. Enter zero if opplicable. Enter your answers in dollars and not in millions of dollars. Problem 10-75 Part a (Static) a. What is LCM's cost depletion for years 1,2 , and 2

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