Question

Use the following data to determine the total dollar amount of assets to be classified as property, plant, and equipment.
Sheffield Corp.
Balance Sheet
December 31, 2022
Cash $128400 Accounts payable $171000
Accounts receivable 124200 Salaries and wages payable 31400
Inventory 207000 Note payable (due 2025) 267000
Short-term investments 90000 Total liabilities $469400
Land (held for future use) 254000 Land 281000
Buildings $336500 Common stock $362000
Less: Accumulated
depreciation (62900) 273600 Retained earnings 739200
Franchise 212400 Total stockholders' equity $1101200
Total assets $1570600 Total liabilities and
stockholders' equity $1570600
a. $821600.
b. $761600
c. $554600.
d. $1019600.

Answer 1

Answer:

c. $554600.

Explanation:

The computation of the property, plant & equipment is shown below:

= Land + Building - Accumulated depreciation

= $281,000 + $336,500 - $62,900

= $554,600

By applying the above formula so that the property, plant & equipment could be come and the same is to be considered

Hence, the correct option is c. $554,600