Last Chance Mine (LC) purchased a coal deposit for $780,000. It estimated it would extract 12000 tons of coal from the deposit. LC mined the coal and sold it reporting gross receipt of $ 1million for year 1. During the year 1. LC report net income from the coal deposit activity in the amount of $80000. In the year 1, LC extracted 3,000 ton of coal.
What is Last Chance's percentage depletion for year 1 (the applicable percentage for coal is 10 percent)?