Question

These are selected account balances on December 31, 2014:Land $100,000Land (held for future use) $800,000Buildings $800,000Inventory $200,000Equipment $450,000Furniture $100,000Accumulated Depreciation $300,000What is the total amount of property, plant, and equipment that will appear on the balance sheet?

Answer 1

Answer:

The total amount of property, plant, and equipment that will appear on the balance sheet is $1,950,000

Explanation:

The computation of the total amount of fixed assets are shown below:

= Land + Land (held for future use) + building + equipment + furniture - accumulated depreciation

= $100,000 + $800,000 + $800,000 + $450,000 + $100,000 - $300,000

= $1,950,000

The inventory is a current assets so it would not be included while computing the total value of the fixed assets.