Question

Long-term investments at Fake Company Theta total $14 million for the reporting period just ended. The company's balance sheet also showed $271 million in gross property, plant, and equipment and $46 million in accumulated depreciation. What is net property, plant, and equipment?

Answer 1

The net property, plant, and equipment for Fake Company Theta is calculated by subtracting accumulated depreciation ($46 million) from the gross property, plant, and equipment ($271 million), resulting in a net PP&E of $225 million.

Step-by-step explanation:

To calculate the net property, plant, and equipment (PP&E) for Fake Company Theta, we need to subtract accumulated depreciation from the gross property, plant, and equipment. The values given in the question are a gross PP&E of $271 million and accumulated depreciation of $46 million.

Net PP&E is calculated as follows:

Gross PP&E - Accumulated Depreciation = Net PP&E

$271 million - $46 million = $225 million

Therefore, Fake Company Theta's net property, plant, and equipment is $225 million.