The Following Selected Account Balances Appear on the December 31

question 107

Multiple Choice

The following selected account balances appear on the December 31, 2018 balance sheet of Superchunk Co. $\begin{array}{lr}\text { Land (location of the office building) } & \$ 150,000 \\\text { Land (held for future use) } & 225,000 \\\text { Office Building } & 800,000 \\\text { Inventory } & 300,000 \\\text { Equipment } & 675,000 \\\text { Office Furniture } & 225,000 \\\text { Accumulated Depreciation } & 640,000\end{array}$ What is the total amount of property, plant, and equipment that will be reported on the balance sheet?

• A) $1,210,000
• B) $1,435,000
• C) $1,510,000
• D) $1,850,000

---

Definitions:

Periodic Tenancy

A tenancy that automatically renews for successive periods (e.g., month-to-month, year-to-year) until either the landlord or the tenant terminates it.

Tenancy at Will

An agreement where a tenant can occupy property with the consent of the owner but with no fixed term and can be terminated by either party at any time.

Tenancy at Sufferance

A legal situation where a tenant remains in possession of property after the expiration of the lease, without the landlord's consent.

Fee Simple Tenancy

The most complete form of ownership of real property, giving the holder full possessory rights and responsibilities now and in the future.