Question

Orange Bowl Company reported plant assets, net of accumulated depreciation (i.e., book value) for the latest...

Orange Bowl Company reported plant assets, net of accumulated depreciation (i.e., book value) for the latest fiscal year of $5 million.

What is the $5 million considered? (ie cost, revenue, etc.)

Homework Answers

Answer #1

book value of the plant asset is not a cost , it is an asset which is reported in the balance sheet

accumulated depreciation is a contra asset account which is deducted from the original cost of plant and reported in balance sheet

PP&E

cost original                                     XXXX

less accumulated dep                    (XXX)

net plant assets or book value                        XXX

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Accumulated depreciation represents a contra-asset that reduces the net book value of property, plant, and equipment....
Accumulated depreciation represents a contra-asset that reduces the net book value of property, plant, and equipment. True or False?
Cullumber Company reported net income of $162,030. It reported depreciation expense of $12,520 and accumulated depreciation...
Cullumber Company reported net income of $162,030. It reported depreciation expense of $12,520 and accumulated depreciation of $48,710. Amortization expense was $6,640. Cullumber Company purchased new equipment during the year for $50,660. Determine net cash provided by operating activities under the direct method.
Pharoah Company reported net income of $182,050. It reported depreciation expense of $16,690 and accumulated depreciation...
Pharoah Company reported net income of $182,050. It reported depreciation expense of $16,690 and accumulated depreciation of $47,580. Amortization expense was $8,810. Pharoah Company purchased new equipment during the year for $52,800. Determine net cash provided by operating activities under the indirect method.
What would the depreciation expense be for the year with the following information: 2018: Plant assets:...
What would the depreciation expense be for the year with the following information: 2018: Plant assets: 325,000 Accumulated depreciation: (65,000) 2017: Plant assets: 250,000 Accumulated depreciation: (60,000) - Old plant assets costing $25,000 were sold for $10,000 cash when book value was $13,000.
The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS...
The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Balance Sheets 2017 2016 Plant assets Equipment $ 285,000 $ 375,000 Accum. Depr.—Equipment (142,000 ) (252,000 ) Equipment, net $ 143,000 $ 123,000 Buildings $ 485,000 $ 505,000 Accum. Depr.—Buildings (163,000 ) (348,000 ) Buildings, net $ 322,000 $ 157,000 During 2017, equipment with a book value of $61,000 and an original cost of $210,000 was sold at a loss of $7,200....
Below are 3 journal entries relating to Plant Assets. (1) dr. Plant Assets                 9,000             
Below are 3 journal entries relating to Plant Assets. (1) dr. Plant Assets                 9,000                           (2) dr. Cash                 1,000 cr. Cash                                   9,000                     dr. A/Depreciation            3,000 Record the purchase of assets with cash                                cr. Plant Asset             3,600                                                                                                 cr. Gain on sale               400 (3) dr. Depreciation Expense 2,400                           Record sale of Plant Asset for Cash             cr. Accum. Depreciation        2,400 Record depreciation expense Use these journal entries to post to the T accounts, Plant Assets and...
The plant assets section of the comparative balance sheets of Anders Company is reported below. Anders...
The plant assets section of the comparative balance sheets of Anders Company is reported below. Anders Company Comparative Balance Sheets 2015 2014 Plant assets Equipment $ 180,000 $ 270,000 Accum. Depr.—Equipment (100,000 ) (210,000 ) Equipment, net $ 80,000 $ 60,000 Buildings $ 380,000 $ 400,000 Accum. Depr.—Buildings (100,000 ) (285,000 ) Buildings, net $ 280,000 $ 115,000 During 2015, equipment with a book value of $40,000 and an original cost of $210,000 was sold at a loss of $3,000....
At December 31, 2017, Grand Company reported the following as plant assets. Land $ 4,320,000 Buildings...
At December 31, 2017, Grand Company reported the following as plant assets. Land $ 4,320,000 Buildings $29,800,000 Less: Accumulated depreciation—buildings 10,570,000 19,230,000 Equipment 47,520,000 Less: Accumulated depreciation—equipment 4,910,000 42,610,000     Total plant assets $66,160,000 During 2018, the following selected cash transactions occurred. April 1 Purchased land for $2,000,000. May 1 Sold equipment that cost $840,000 when purchased on January 1, 2014. The equipment was sold for $504,000. June 1 Sold land purchased on June 1, 2008 for $1,430,000. The land cost...
1.assets classified as property plant and equipment are reported at? A. each asset's estimated market value...
1.assets classified as property plant and equipment are reported at? A. each asset's estimated market value at the balance sheet date less depreciation B. each asset's estimated market value at the balance sheet date C. the estimated salvage value at the balance sheet date D. each asset's original cost less depreciation since acquisition 2. depreciation is A. an effort to achieve proper matching of the cost of operating assets with related revenues B. an accumulation of funds to replace the...
Samson Company applies revaluation accounting to plant assets with a carrying value of P800,000, a useful...
Samson Company applies revaluation accounting to plant assets with a carrying value of P800,000, a useful life of 4 years, and no salvage value. Depreciation is calculated on the straight-line basis. At the end of year 1, independent appraisers determine that the asset has a fair value of P750,000. The journal entry to adjust the plant assets to fair value and record revaluation surplus in year one will include a; Select one: a. credit to Plant Assets for P150,000. b....