The Following Selected Account Balances Appear on the December 31

question 136

Multiple Choice

The following selected account balances appear on the December 31 2016 balance sheet of Gigante Co. $\begin{array}{lr}\text { Land (location of the corporation's office building) } & \$ 155,000 \\\text { Land (held for future use) } & 225,000 \\\text { Corporate Office Building } & 850,000 \\\text { Inventory } & 300,000\\\text { Equipment } & 674,000 \\\text { Office Furniture } & 221,000 \\\text { Accumulated Depreciation } & 650,000\end{array}$ What is the total net amount of property plant and equipment that will be reported on the balance sheet?

• A) $1250000
• B) $1475000
• C) $1550000
• D) $1906000

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Definitions:

Total Variable Costs

The overall expense that changes in proportion to the level of output or production activity.

Output

The total amount of goods or services produced by a company, industry, or economy within a specific period.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply.

Total Variable Costs

The sum of all costs that vary with the level of output, including materials and labor directly involved in the production process.