On January 2, 2018, Stewart Company purchased land that cost $600,000, a buildin

Question

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

Explanation / Answer

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

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