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 and cash equivalents $71500 Accounts payable $127500 Accounts receivable 93500 Salaries and wages payable 10000 Inventory 146000 Bonds payable 177500 Prepaid insurance 83000 Total liabilities $315000 Stock Investments 176000 Land 191500 Buildings $226500 Common stock $216500 Less: Accumulated depreciation (52500) 174000 Retained earnings 516000 Trademarks 112000 Total stockholders' equity $732500 Total assets $1047500 Total liabilities and stockholders' equity $1047500

Answer 1

The total dollar amount of assets to be classified as property, plant, and equipment is $365,500.

Step-by-step explanation:

In accounting, property, plant, and equipment are simply the fixed assets of an organization.

From the question, only Land and Buildings can be classified as property, plant, and equipment and their total dollar amount can be calculated based on the information from the question as follows:

Land = $191500

Buildings = $226500

Accumulated depreciation on Buildings = $52500

Buildings net book value = Buildings - Accumulated depreciation on Buildings = $226500 - $52500 = $174000

Therefore, we have:

Total dollar amount of property, plant, and equipment = Land + Buildings net book value = $191500 + $174000 = $365,500

Therefore, the total dollar amount of assets to be classified as property, plant, and equipment is $365,500.