BE5-4
Question
Lowell Company’s December 31, 2017, trial balance includes the following accounts: Inventory \(120,000, Buildings \)207,000, Accumulated Depreciation—Equipment \(19,000, Equipment \)190,000, Land (held for investment) \(46,000, Accumulated Depreciation—Buildings \)45,000, Land \(71,000, and Timberland \)70,000. Prepare the property, plant, and equipment section of the balance sheet
Step-by-Step Solution
VerifiedThe business entity's property, plant, and equipment total $474,000.
The total expense value of the fixed asset up to a certain date is known as accumulated depreciation. It is subtracted from the asset's acquisition value in the balance sheet to determine the book value of that underlying asset.
Particular | Amount $ | Amount $ |
Land |
| $71,000 |
Building | $207,000 |
|
Less: Accumulated depreciation – building | (45,000) | 162,000 |
|
|
|
Equipment | 190,000 |
|
Less: Accumulated depreciation – equipment | (19,000) | 171,000 |
Timberland |
| 70,000 |
Total property, plant and equipment |
| $474,000 |