Question

These are selected account balances on December 31, 2015. Land (location of the office building) $100,000 Land (held for future use) 150,000 Office Building 700,000 Inventory 200,000 Equipment 450,000 Office Furniture 150,000 Accumulated Depreciation 425,000 What is the total amount of property, plant, and equipment that will appear on the balance sheet? Group of answer choices

Answer 1

Answer:

$1,125,000

Explanation:

The total amount of property, plant, and equipment will appear under the Non-Current Assets section of the Balance Sheet. Thus prepare the Non Current Asset Section as follows :

Non Current Asset Section

Land                                                        $100,000

Land held for future use                        $150,000

Office Building                                       $700,000

Equipment                                             $450,000

Office Furniture                                      $150,000

Accumulated Depreciation                 ($425,000)

Total                                                      $1,125,000