On January 1, 2019, Blossom Corporation acquired a small mine for $20 million along with equipment costing $8 million. M
Posted: Fri Jul 01, 2022 8:41 am
On January 1, 2019, Blossom Corporation acquired asmall mine for $20 million along with equipment costing$8 million. Management estimated at that time that the mineshould produce 25,000 ounces of gold and have no residualvalue while the equipment would have a useful life of eight yearsand no residual value. In 2019 and 2020, the companyproduced 1,000 and 1,400 ounces of gold,respectively. The company uses the straight-line method ofdepreciation for its equipment, and its year end is December31.
On December 31, 2021, the company sold some equipment for a lossof $250,000. After recording the sale, the balances in theEquipment account and Accumulated Depreciation account were$6,800,000 and $1,841,667, respectively. Based on thisinformation, what were the proceeds received when this equipmentwas sold?
On December 31, 2021, the company sold some equipment for a lossof $250,000. After recording the sale, the balances in theEquipment account and Accumulated Depreciation account were$6,800,000 and $1,841,667, respectively. Based on thisinformation, what were the proceeds received when this equipmentwas sold?