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Financial Accounting

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Gain or Loss on Sale of Partially Depleted Mineral Rights

FINACT-P1POS3

A company purchased mining property (mineral rights) estimated to contain 7,350,000 tons of ore for \$1,837,500. In Year 1 it mined and sold 857,000 tons of ore and in Year 2 it mined and sold 943,000 tons of ore. At the end of Year 2, they decided to sell the mineral rights for $1,500,000.

What was the gain or loss on the sale of mineral rights?