On January 1 2019 Pharoah Corporation Acquired A Small Mine For 35 Million Along With Equipment Costing 8 Million M 1 (14.42 KiB) Viewed 13 times
On January 1 2019 Pharoah Corporation Acquired A Small Mine For 35 Million Along With Equipment Costing 8 Million M 2 (9.34 KiB) Viewed 13 times
On January 1, 2019, Pharoah Corporation acquired a small mine for $35 million along with equipment costing $8 million. Management estimated at that time that the mine should produce 70,000 ounces of gold and have no residual value while the equipment would have a useful life of eight years and no residual value. In 2019 and 2020, the company produced 2.000 and 2,400 ounces of gold, respectively. The company uses the straight-line method of depreciation for its equipment, and its year end is December 31.
On November 1, 2021, the company purchased additional equipment for $3 million that also had a useful life of eight years and no residual value. What is the depreciation for the two months ending December 31, 2021? Total depreciation for 2 months $
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