Question

If a bedding plant grower's inventory shows plants worth $40,000, supplies worth $1,000 and land valued at $200,000, what amount should be entered on the non-depreciable inventory line of the financial statement?

Answer 1

The non-depreciable inventory amount on the financial statement for the bedding plant grower would be $41,000, including both plants and supplies.

Step-by-step explanation:

If a bedding plant grower's inventory shows plants worth $40,000, supplies worth $1,000 and land valued at $200,000, the amount that should be entered on the non-depreciable inventory line of the financial statement is the total value of items that do not depreciate.

In this case, it would include the plants and supplies, but not the land, as it's typically considered a non-depreciable asset. Therefore, the total non-depreciable inventory would be the sum of the plants and supplies, which is $41,000.