On January 1, 2019, Blossom Corporation acquired a small mine for $20 million along with equipment costing $8 million. Management estimated at that time that the mine should produce 25,000 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 1,000 and 1,400 ounces of gold, respectively. The company uses the straight-line method of depreciation for its equipment, and its year end is December 31. On December 31, 2021, the company sold some equipment for a loss of $250,000. After recording the sale, the balances in the Equipment account and Accumulated Depreciation account were $6,800,000 and $1,841,667, respectively. Based on this information, what were the proceeds received when this equipment was sold? Cash proceeds from sale $Type your answer here

On January 1, 2019, Blossom Corporation acquired a small mine for $20 million along with equipment costing $8 million. Management estimated at that time that the mine should produce 25,000 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 1,000 and 1,400 ounces of gold, respectively. The company uses the straight-line method of depreciation for its equipment, and its year end is December 31. On December 31, 2021, the company sold some equipment for a loss of $250,000. After recording the sale, the balances in the Equipment account and Accumulated Depreciation account were $6,800,000 and $1,841,667, respectively. Based on this information, what were the proceeds received when this equipment was sold? Cash proceeds from sale $Type your answer here

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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