Question

Lowell Company’s December 31, 2017, trial balance includes the following accounts: Inventory \(120,000, Buildings \)207,000, Accumulated Depreciation—Equipment \(19,000, Equipment \)190,000, Land (held for investment) \(46,000, Accumulated Depreciation—Buildings \)45,000, Land \(71,000, and Timberland \)70,000. Prepare the property, plant, and equipment section of the balance sheet

Short answer

The business entity's property, plant, and equipment total$474,000.

Step-by-step solution

Definition of Accumulated Depreciation

The total expense value of the fixed asset up to a certain date is known as accumulated depreciation. It is subtracted from the asset's acquisition value in the balance sheet to determine the book value of that underlying asset.

Property, Plant and Equipment Section

Particular	Amount $	Amount $
Land		$71,000
Building	$207,000
Less: Accumulated depreciation – building	(45,000)	162,000
Equipment	190,000
Less: Accumulated depreciation – equipment	(19,000)	171,000
Timberland		70,000
Total property, plant and equipment		$474,000