Required information [The following information applies to the questions displayed below.] Last Chance Mine (LCM) purchased a coal deposit for $1,667,600. It estimated it would extract 18,950 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.32 million, $5 million, and $4.1 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 ($17,500), $702,500, and $695,000, respectively. In years 1-3, LCM extracted 19,950 tons of coal as follows: (1) Tons of Coal 18,950 Year 1 4,800 Tons Extracted per Year Year 2 9,150 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. Depletion (2) Basis (2)+(1) Rate $1,667,600 $88.00 Year 1 Year 2 Year 3 b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)? Year 3 6,000 Percentage Depletion
Required information [The following information applies to the questions displayed below.] Last Chance Mine (LCM) purchased a coal deposit for $1,667,600. It estimated it would extract 18,950 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.32 million, $5 million, and $4.1 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 ($17,500), $702,500, and $695,000, respectively. In years 1-3, LCM extracted 19,950 tons of coal as follows: (1) Tons of Coal 18,950 Year 1 4,800 Tons Extracted per Year Year 2 9,150 Note: Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars. Depletion (2) Basis (2)+(1) Rate $1,667,600 $88.00 Year 1 Year 2 Year 3 b. What is LCM's percentage depletion for each year (the applicable percentage for coal is 10 percent)? Year 3 6,000 Percentage Depletion
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 6CE
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