On January 1 2019 Pharoah Corporation Acquired A Small Mine For 35 Million Along With Equipment Costing 8 Million M 1 (16.78 KiB) Viewed 4 times
On January 1 2019 Pharoah Corporation Acquired A Small Mine For 35 Million Along With Equipment Costing 8 Million M 2 (10.04 KiB) Viewed 4 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.
What is the amount of the gain or loss that would arise when a quarter of the equipment was sold on January 1, 2021, for cash proceeds of $1.8 million? from sale of equipment
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