A Company Has the Following Assets The Total Amount Reported Under Property, Plant, and Equipment Would

question 106

Multiple Choice

A company has the following assets: $$\begin{array} { l r } \text { Buildings and Equipment, less accumulated depreciation of } \$ 2,000,000 & \$ 9,600,000 \\\text { Copyrights } & 960,000 \\\text { Patents } & 4,000,000 \\\text { Timberlands, less accumulated depletion of } \$ 2,800,000 & 4,800,000\end{array}$$ The total amount reported under Property, Plant, and Equipment would be

• A) $19,360,000.
• B) $14,400,000.
• C) $18,400,000.
• D) $15,360,000.

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Definitions:

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a dividend potential.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up.

Tangible Asset

Physical assets that can be seen and touched, such as buildings, machinery, and inventory.

Earning Revenue

The process of generating income from the sale of goods or services over a specific period.