The following information is for Sunny Day Real Estate: Sunny Day Real Estate Ba
ID: 2432705 • Letter: T
Question
The following information is for Sunny Day Real Estate:
Sunny Day Real Estate
Balance Sheet
December 31, 2015
Cash $ 25,000 Accounts Payable $ 60,000
Prepaid Insurance 30,000 Salaries and Wages Payable 15,000
Accounts Receivable 50,000 Mortgage Payable 85,000
Inventory 70,000 Total Liabilities 160,000
Land Held for Investment 85,000
Land 120,000
Buildings $100,000 Common Stock $120,000
Less Accumulated Retained Earnings 250,000 370,000
Depreciation (20,000) 80,000
Trademark 70,000 Total Liabilities and
Total Assets $530,000 Stockholders’ Equity $530,000
The total dollar amount of assets to be classified as property, plant, and equipment is
a. $200,000.
b. $220,000.
c. $285,000.
d. $305,000.
Explanation / Answer
a. $200,000
The total dollar amount of assets to be classified as property, plant, and equipment is:
= Land + (Buildings - Accumulated Depreciation)
= $120,000 + ($100,000 - $20,000)
= $200,000
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