Question

These are selected account balances on December 31, 2017. Land $150000 Land (held for future use) 225000 Buildings 1200000 Inventory 300000 Equipment 675000 Furniture 150000 Accumulated Depreciation 450000 What is the total amount of property, plant, and equipment that will appear on the balance sheet? $1725000 $2250000 $1950000 $2700000

Answer 1

Answer:

Option (A) is correct.

Explanation:

Given that,

Land = $150,000

Land (held for future use) = $225,000

Buildings = $1,200,000

Inventory = $300,000

Equipment = $675,000

Furniture = $150,000

Accumulated Depreciation = $450,000

Total amount of property, plant, and equipment:

= Land (location of the office building) + Office Building + Equipment + Office Furniture - Accumulated Depreciation

= $150,000 + $1,200,000 + $675,000 + $150,000 - $450,000

= $1,725,000