Question

Use the following data to determine the total dollar amount of assets to be

classified as property, plant, and equipment.
Koonce Office Supplies
Balance Sheet
December 31, 2014
Accounts payable
Salaries and wages payable
Mortgage payable
Total liabilities
$ 140,000
20,000
160,000
$320,000
Cash
$ 130,000
Accounts receivable
100,000
Inventory
110,000
Prepaid insurance
60,000
Stock investments
170,000
Land
180,000
Buildings
$210,000
Less: Accumulated
depreciation (40,000.) 170,000
Trademarks
140,000
Total assets
$1,060,000
Common stock
Retained earnings
Total stockholders' equity
Total liabilities and
stockholders' equity
$240,000
500,000
$740.000
$1,060,000​

Answer 1

=$350,000

Step-by-step explanation:

Property, plant, and equipment are the tangible long-term fixed assets of a company. The total of PPE is the sum of all fixed long term assets minus accumulated depreciation.

There are fixed assets hence will appear on the asset side of the balance sheet. For Koonce Office Supplies, PPE will include

Land : $180,000

Buildings: $210,000

Total = $180,000 + $210,000

Total = $390,000

less accumulated depreciation

=$390,000 -$40,000

=$350,000