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On January 1, 2019, Sandhill Corporation acquired a small mine for $35 million along with...

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Accounting

On January 1, 2019, Sandhill Corporation acquired a small mine for $35 million along with equipment costing $8 million. Management estimated at that time that the mine should produce 35,000 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 1,800 and 2,200 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?

Gain: from sale of equipment $-------?

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