Multiple Choice Question 117 The following information is fo

Multiple Choice Question 117 The following information is for Bridgeport Day Real Estate Bridgeport Day Real Estate Balance Sheet Dec Cash Prepaid Insurance Accounts Receivable Inventory Land Held for Investment Land Buildings $24500 Accounts Payable Salaries and Wages Payable Mortgage Payable $59200 14700 84500 158400 30200 51000 Total Liabilities 85200 122000 121700 251100 $100000 Common Stock Retained Earnings Less Accumulated 372800 Depreciation (20200)79800 68700Total Liabilities and Trademark Total Assets $531200 Stockholders\' Equity $531200 The total dollar amount of assets to be dassifled as property, piant. and equioment is $201800 $307200 $2870 $222000

Solution

ANS :- OPTION A 201800

REASON :-

land value 122000+building 79800

Property, plant and equipment is the long term or noncurrent asset section of the balance sheet. Included in this classification are land, buildings, machinery, office equipment, vehicles, furniture and fixtures used in a business. Also included in property, plant and equipment is the accumulated depreciation for these assets (except for land) but Generally, the property, plant and equipment assets are reported at their cost followed by a deduction for the accumulated depreciation that applies to all of these assets. hence can follow option D also.

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The assets reported as property, plant and equipment are described as long-lived, tangible assets. They are also described as fixed assets or as plant assets