Final answer:
To prepare the PP&E section of Oz Corporation's balance sheet, calculate the net value of each asset category by subtracting accumulated depreciation from buildings and equipment, and sum the values together along with the value of land and patents. Therefore, the total PP&E will be $117,500 + $70,000 + $50,000 + $26,000 = $263,500.
Step-by-step explanation:
Preparation of Property, Plant, and Equipment Section
To prepare the Property, Plant, and Equipment (PP&E) section of Oz Corporation's year-end balance sheet, we must list out the assets and subtract any accumulated depreciation associated with those assets. The value of the PP&E is calculated as follows:
Land: $50,000
Buildings: $175,000
Less Accumulated Depreciation - Buildings: ($57,500)
Equipment: $95,000
Less Accumulated Depreciation - Equipment: ($25,000)
The total value for Buildings after depreciation is $175,000 - $57,500 = $117,500, and the value for Equipment is $95,000 - $25,000 = $70,000. The Patents and Land do not have associated depreciation. The net PP&E on the balance sheet would be the sum of all these figures:
Net Buildings: $117,500
Net Equipment: $70,000
Land: $50,000
Patents (net): $26,000
Therefore, the total PP&E will be $117,500 + $70,000 + $50,000 + $26,000 = $263,500.