On January 2 2018 Stewart Company purchased land that cost 6

On January 2, 2018, Stewart Company purchased land that cost $600,000, a building on the land that cost $550,000, and equipment that cost $72,000. The building has an estimated useful life of 22 years. The equipment has an estimated useful life of 8 years. Required: Prepare the property, plant, and equipment section of the balance sheet as of December 31, 2018. Note: Use straight-line depreciation with no salvage value. Stewart Company Balance Sheet (partial) December 31 Property, Plant, and Equipment (Choose one) Total Property, Plant, and Equipment Clear UndoH Next>> I don\'t know

Solution

SOLUTION:

Balance sheet Partial
Dec-31
Land		600,000
Building	550,000
Less: Accumulated depreciation (550,000 /22)	25,000	525,000
Equipment	72,000
Less: Accumulated depreciation (72,000/8)	9,000	63,000
Total property, plant, and equipment		1,188,000