$54.938 million Midyear on July 31st, the Baldwin Corporation\'s balance sheet r

Question

$54.938 million

Midyear on July 31st, the Baldwin Corporation's balance sheet reported:

Total Liabilities of $77.212 million
Total Common Stock of $3.810 million
Cash of $6.030 million
Retained Earnings of $28.304 million.

What were the Baldwin Corporation's total assets? Select: 1 $103.296 million $109.326 million $51.128 million

$54.938 million

The Chester Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,090,000. What will the book value of this purchase (exclude all other plant and equipment) be after its third year of use? (Use FASB GAAP) Select: 1 $32,720,000 $35,446,667 $29,448,000 $33,538,000

Explanation / Answer

Total assets = Total liabilities+(common stock+retained earnings)

= 77.212+(3.81+28.304)

Total assets = 109.326 million

so answer is b) $109.326 million

Calculate book value after third year :

Depreciation per year = (40900000-4090000)/15 = 2454000

Three year dep = 2454000*3 = 7362000

Book Value after third year = (40900000-7362000) = 33538000

So answer is d) $33538000

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