Question

Use the following data to determine the total dollar amount of assets to be classified as property, plant, and equipment.

Nash's Trading Post, LLC Balance Sheet December 31, 2022

Cash $185000 Accounts payable $195000
Accounts receivable 140000 Salaries and wages payable 25000
Inventory 150000 Mortgage payable 225000
Prepaid insurance 85000 Total liabilities $445000
Stock investments 250000
Land 250000
Buildings $300000 Common stock $335000
Less: Accumulated
depreciation (55000) 245000 Retained earnings 725000
Goodwill 200000 Total stockholders' equity $1060000
Total assets $1505000 Total liabilities and stockholders' equity $1505000

Answer 1

$495,000

Step-by-step explanation:

Calculation to determine the total dollar amount of assets to be classified as property, plant, and equipment

Land $250,000

Add:Buildings less accumulated depreciation $245,000

($300,000-$55,000)

Total $495,000

Therefore the total dollar amount of assets to be classified as property, plant, and equipment will be $495,000