Question

These are selected account balances on December 31, 2022. Land $155000 Land (held for future use) 220500 Buildings 1074000 Inventory 237000 Equipment 659000 Furniture 152000 Accumulated Depreciation 447000 What is the total amount of property, plant, and equipment that will appear on the balance sheet

Answer 1

$1,813,500

Step-by-step explanation:

According to IAS 16, Property, Plant and Equipment are tangible items that are held for use in production or supply of goods or services, for rental to others or for administrative purposes and are expected to be used during more than one year period.

The total amount of property, plant, and equipment will be calculated as :

Land $155,000

Land (held for future use) $220,500

Buildings $1,074,000

Equipment $659,000

Furniture $152,000

Accumulated Depreciation ($447,000) $1,438,000

Total $1,813,500