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"A company has the following assets:

Buildings and Equipment,
less accumulated depreciation of 21,000,000
Copyrights 12,000,000
Land $14,000,000
The total amount reported under Property, Plant, and Equipment would be"

User Bob Lauer
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1 Answer

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Final answer:

To calculate the total PP&E, sum the net value of Buildings and Equipment (cost minus accumulated depreciation), the value of Copyrights, and the Land's value. We cannot provide a total PP&E value without the cost of Buildings and Equipment before depreciation.

Step-by-step explanation:

To calculate the total amount reported under Property, Plant, and Equipment (PP&E), one must add the values of Buildings and Equipment (net of accumulated depreciation), Copyrights, and Land. PP&E is a category on the balance sheet that includes long-term assets vital to business operations and not easily converted into cash.

Although the question does not provide the initial value of Buildings and Equipment before depreciation, the accumulated depreciation of $21,000,000 is provided. This value is subtracted from the cost of Buildings and Equipment to find their net value. Copyrights are valued at $12,000,000 and Land at $14,000,000. With these values, we calculate the total PP&E by summing the net value of Buildings and Equipment, the value of Copyrights, and the value of Land.

Assuming the value of Buildings and Equipment before depreciation is X, the calculation for total PP&E would be:

  • Net value of Buildings and Equipment = X - $21,000,000 (accumulated depreciation)
  • Value of Copyrights = $12,000,000
  • Value of Land = $14,000,000
  • Total PP&E = (X - $21,000,000) + $12,000,000 + $14,000,000

Since we do not have the initial cost of Buildings and Equipment, we cannot give a specific numerical value. However, the formula provided will allow the calculation of Total PP&E once the initial value of Buildings and Equipment (X) is known.

User Neel Alex
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